Problem 8-9A (a) Prepare a multiple-step income statement. Problem 8-9A The adju
ID: 2401246 • Letter: P
Question
Problem 8-9A
(a)
Prepare a multiple-step income statement.
Problem 8-9A
The adjusted trial balance of Crane Company for the year ended December 31, 2019, is as follows:Debit Credit Cash $6,000 Accounts Receivable 3,100 Notes Receivable 6,500 Inventory 9,800 Equipment 7,100 Allowance for Doubtful Accounts $300 Accumulated Depreciation—Equipment 1,500 Notes Payable 1,300 Accounts Payable 700 Common Stock 17,300 Retained Earnings 11,400 Dividends 1,400 Sales Revenue 11,690 Interest Revenue 200 Cost of Goods Sold 7,900 Salary and Wages Expense 1,900 Rent Expense 600 Bad Debt Expense 60 Service Charge Expense 30 $44,390 $44,390
Explanation / Answer
MULTIPLE-STEP INCOME STATEMENT.
CRANE COMPANY
Income Statement
For the year ended December 31, 2019
Particulars
Amount ($)
Amount ($)
Sales revenue
11,690
Less: Cost of goods sold
(7,900)
Gross Profit
3,790
Operating Expenses
Salary and Wages Expense
1,900
Rent Expense
600
Bad Debt Expenses
60
Total Operating Expenses
(2,560)
Total Operating Income
1,230
Other Income / (Expenses)
Interest Revenue
200
Service Charge Expense
(30)
Total Other Income, Net
170
Net Income
1,400
CRANE COMPANY
Income Statement
For the year ended December 31, 2019
Particulars
Amount ($)
Amount ($)
Sales revenue
11,690
Less: Cost of goods sold
(7,900)
Gross Profit
3,790
Operating Expenses
Salary and Wages Expense
1,900
Rent Expense
600
Bad Debt Expenses
60
Total Operating Expenses
(2,560)
Total Operating Income
1,230
Other Income / (Expenses)
Interest Revenue
200
Service Charge Expense
(30)
Total Other Income, Net
170
Net Income
1,400