ACCT 550 Week 2 Homework Assignment
To Buy This material Click below link http://www.uoptutors.com/acct-550/acct-550-week-2-homework-assignment E4-4 (Multiple-Step and Single-Step) Two accountants for the firm of Allen and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2012 information related to Webster Company ($000 omitted). Administrative expense | | Officers’ salaries | $ 4,900 | Depreciation of office furniture and equipment | 3,960 | Cost of goods sold | 63,570 | Rent revenue | 17,230 | Selling expense | | Transportation-out | 2,690 | Sales commissions | 7,980 | Depreciation of sales equipment | 6,480 | Sales revenue | 96,500 | Income tax expense | 7,580 | Interest expense | 1,860 |
Instructions
(a) Prepare an income statement for the year 2012 using the multiple-step form. Common shares outstanding for 2012 total 40,550 (000 omitted).
(b) Prepare an income statement for the year 2012 using the single-step form.
(c) Which one do you prefer? Discuss.

E4-12 (Earnings per Share) At December 31, 2011, Schroeder Corporation had the following stock outstanding. 8% cumulative preferred stock, $100 par, 107,500 shares | $10,750,000 | Common stock, $5 par, 4,000,000 shares | 20,000,000 |
During 2012, Schroeder did not issue any additional common stock. The following also occurred during 2012. Income from continuing operations before taxes | $21,650,000 | Discontinued operations (loss before taxes) | 3,225,000 | Preferred dividends declared | 860,000 | Common dividends declared | 2,200,000 | Effective tax rate | 35% |
Instructions
Compute earnings per share data as it should appear in the 2012 income statement of Schroeder Corporation. (Round to two decimal places.)

P4-1 (Multiple-Step Income, Retained