Prepare a Multi-step income statement from the following data: Income Statement
ID: 2415008 • Letter: P
Question
Prepare a Multi-step income statement from the following data:
Income Statement data:
Advertising expense$ 150,000
Cost of merchandise sold3,700,000
Delivery expense30,000
Depreciation expense-office buildings and equipment30,000
Depreciation expense-store buildings and equipment100,000
Dividend revenue4,500
Gain on sale of investments4,980
Income from Pinkberry Co. investment76,800
Income tax expense140,500
Interest expense21,000
Interest revenue2,720
Miscellaneous administrative expense7,500
Miscellaneous selling expense14,000
Office rent expense50,000
Office salaries expense170,000
Office supplies expense10,000
Sales5,254,000
Sales commissions185,000
Sales salaries expense385,000
Store supplies expense21,000
Prepare a Multi-step income statement from the following data:
Income Statement data:
Advertising expense$ 150,000
Cost of merchandise sold3,700,000
Delivery expense30,000
Depreciation expense-office buildings and equipment30,000
Depreciation expense-store buildings and equipment100,000
Dividend revenue4,500
Gain on sale of investments4,980
Income from Pinkberry Co. investment76,800
Income tax expense140,500
Interest expense21,000
Interest revenue2,720
Miscellaneous administrative expense7,500
Miscellaneous selling expense14,000
Office rent expense50,000
Office salaries expense170,000
Office supplies expense10,000
Sales5,254,000
Sales commissions185,000
Sales salaries expense385,000
Store supplies expense21,000
Explanation / Answer
Multi step Income Statement is prepared as under:
Multi step Income Statement For the Year Ended December 31, 20XX Particulars Amount ($) Amount ($) Sales Revenue: Net Sales Revenue $5,254,000 Less: Cost of Goods Sold: Cost of Goods Sold 3,700,000 Gross Profit $1,554,000 Operating Expenses Selling Expenses: Delivery expense $30,000 Advertising Expense 150,000 Sales Commissions Expense 185,000 Sales salaries expense 385,000 Miscellaneous selling expense 14,000 764,000 Administrative Expenses: Office Salaries Expense 170,000 Office Rent Expense 50,000 Office Supplies Expense 10,000 Depreciation expense-office buildings and equipment 30,000 Depreciation expense-store buildings and equipment 100,000 Miscellaneous administrative expense 7,500 Store supplies expense 21,000 388,500 Total Operating Expenses 1,152,500 Operating Income Dividend Revenue 4,500 Other Incomes and Expenses: Gain on sale of investments $4,980 Income from Pinkberry Co. investment 76,800 Interest Revenue 2,720 Interest Expense 21,000 Net Other Incomes and Expenses $68,000 Net Income Before taxes $469,500 Income tax expense $140,500 Net Income $329,000