Using the single-step income statement for ABC Company prepare a ...

[bobypop]

Using the single-step income statement for ABC Company prepare a multiple-step income statement.
 
  ABC Company
  Income Statement
 
  Income
   Net sales 1,750
   Interest income 90
   1,840
 
  Costs and expenses
   Cost of goods sold 1,000
   Interest expense 70
   Depreciation expense 220
   Income tax expense 70
   Advertising expense 110
   General and administrative expenses 180
  Net earnings  190
 
 
 What will be an ideal response?

Question 2

A person authorized to write checks drawn on a checking account at a bank must sign and have on file with the bank a
 a. deposit ticket.
   b. signature card.
   c. bank statement.
   d. bank reconciliation.
   e. payee card.

[Jsherida]

Answer to Question 1

ABC Company
Income Statement

Net sales 1,750
Cost of goods sold 1,000
Gross profit  750
Depreciation expense 220
Advertising expense 110
General and administrative expenses 180
Operating profit  240
Interest income 90
Interest expense (70)
Earnings before taxes  260
Income tax expense 70
Net profit 190

Answer to Question 2

b

[bobypop]

Excellent

[bimper21]

Great answer, keep it coming