A) Multiple-Step Form

P. Bride Company
Income Statement
For Year Ended December 31, 2017

Sales Revenue $96,500

Cost of goods sold 60,570
Gross profit 35,930

Operating Expenses
Selling expenses
Delivery expenses $2,690
Sales Commisions 7,980
Depreciation of sales equip. 6,480 17,150

Administrative Expenses
Office salaries $4,900
Depreciation of offife furniture
and equipment 3,960 8,860 26,010
Income from operations 9,920

Other Revenues and Gains

Rent revenue 17,230
27,150

Other Expenses and Losses

Interest expense 1,860

Income before income tax 25,290

Income tax 9,070
$ 16,220

Earnings per share ($16,220 / 40,550) $ 0.40

B) Single-Step Form
P. Bride Company
Income Statement
For Year Ended December 31, 2017

Revenues
Net sales 96,500
Rental revenue 17,230
Total revenue 113,730

Expenses
 Cost of goods sold 60,570
Selling expenses 17,150
Administrative expenses 8,860
Interest expense 1,860
Total expenses 88,440

Income before tax 25,290

Income tax 9,070
Total income 16,220

Earnings per share $ 0.40

C)
Escogería el single-step statement porque solo incluye ingresos y gastos. Es una
representación simple del statement y es más fácil de entender.
P 5-2 Montoya, Inc.
Balance Sheet
31-Dec-17

Assets
Current Assets
Cash $ 360,000
Debt investments (trading) 121,000
Notes receivable 445,700
Income tax receivables 97,630
Inventory 239,800
Prepaid expenses 87,920
Total current assets 1,352,050

Property, Plant and Equipment

Land 480,000
Buildings 1,640,000
Less: Accum depreciation
buildings 270,200 1,369,800
Equipment 1,470,000
Less: Accum depreciation
equipment 292,000 1,178,000 3,027,800

Intangible Assets
Goodwill 125,000
Total assets $ 4,504,850

Liability and Stakeholders' Equity

Current Liability
Accounts Payable $ 490,000
Notes payable (to banks) 265,000
Payroll taxes payable 177,591
Income tax payable 98,362
Rent payable (short-term) 45,000
Total current liabilities 1,075,953

Long-Term Liabilities
Notes payable (long-term) 1,600,000
Bonds payable $ 300,000
Less: Discount on bonds
payable 15,000 285,000
Rent payable (long-term) 480,000 2,365,000
Total liabilities 3,440,953

Stockholders' Equity
Capital stock
Preferred stock, $10 par; 20,000
shares authorized, 15,000
shares issued 150,000
Common stock, $1 par;
400,000 shares authorized
200,000 issued 200,000 350,000

Retained earnings 713,897

Total stockholders' equity 1,063,897
Total liability and stockholders'
equity $ 4,504,850