E3.5 (LO 1) Multiple-Step and Single-Step Statements
Two accountants for the firm of Elwes 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 2025 information related to P. Bride Company ($000 omitted).
Administrative expense
Officers’ salaries $ 4,900
Depreciation of office furniture and equipment 3,960
Cost of goods sold 60,570
Rent revenue 17,230
Selling expense
Delivery expense 2,690
Sales commissions 7,980
Depreciation of sales equipment 6,480
Sales revenue 96,500
Income tax 9,070
Interest expense 1,860
Instructions
a. Complete the income statement for the year 2025 using the multiple-step form. Common
shares outstanding for 2025 total 40,550 (000 omitted).
b. Complete the income statement for the year 2025 using the single-step form.
c. Which one do you prefer? Discuss.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into
the yellow shaded input cells.
,a. P. BRIDE COMPANY
Income Statement
For the Year Ended December 31, 2025
(In thousands, except earnings per share)
Operating Expenses
Other Revenues and Gains
Other Expenses and Losses
, b. P. BRIDE COMPANY
Income Statement
For the Year Ended December 31, 2025
(In thousands, except earnings per share)
Revenues
Expenses
c. Key issues supporting preference should include:
Single-step:
Multiple-step:
Two accountants for the firm of Elwes 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 2025 information related to P. Bride Company ($000 omitted).
Administrative expense
Officers’ salaries $ 4,900
Depreciation of office furniture and equipment 3,960
Cost of goods sold 60,570
Rent revenue 17,230
Selling expense
Delivery expense 2,690
Sales commissions 7,980
Depreciation of sales equipment 6,480
Sales revenue 96,500
Income tax 9,070
Interest expense 1,860
Instructions
a. Complete the income statement for the year 2025 using the multiple-step form. Common
shares outstanding for 2025 total 40,550 (000 omitted).
b. Complete the income statement for the year 2025 using the single-step form.
c. Which one do you prefer? Discuss.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into
the yellow shaded input cells.
,a. P. BRIDE COMPANY
Income Statement
For the Year Ended December 31, 2025
(In thousands, except earnings per share)
Operating Expenses
Other Revenues and Gains
Other Expenses and Losses
, b. P. BRIDE COMPANY
Income Statement
For the Year Ended December 31, 2025
(In thousands, except earnings per share)
Revenues
Expenses
c. Key issues supporting preference should include:
Single-step:
Multiple-step:
