Prepare a multiple-step income statement. (List other revenues before other expe
ID: 2498399 • Letter: P
Question
Prepare a multiple-step income statement. (List other revenues before other expenses.)
Lambert Department Store is located in midtown Metropolis. During the past several years, net income has been declining because suburban shopping centers have been attracting business away from city areas. At the end of the company’s fiscal year on November 30, 2014, these accounts appeared in its adjusted trial balance.Accounts Payable $ 36,716 Accounts Receivable 23,564 Accumulated Depreciation—Equipment 93,160 Cash 10,960 Common Stock 47,950 Cost of Goods Sold 841,591 Freight-Out 8,494 Equipment 215,090 Depreciation Expense 18,495 Dividends 16,440 Gain on Disposal of Plant Assets 2,740 Income Tax Expense 13,700 Insurance Expense 12,330 Interest Expense 6,850 Inventory 35,894 Notes Payable 59,595 Prepaid Insurance 8,220 Advertising Expense 45,895 Rent Expense 46,580 Retained Earnings 19,454 Salaries and Wages Expense 160,290 Sales Revenue 1,238,480 Salaries and Wages Payable 8,220 Sales Returns and Allowances 27,400 Utilities Expense 14,522
Additional data: Notes payable are due in 2018.
Explanation / Answer
Multiple step Income statement:
Particulars Amount $ Amount $ Sales Revenue 1,238,480 Sales Returns and Allowances -27,400 Cost of Goods Sold -841,591 Gross Profit 369,489 Operating Expenses Selling Expenses Freight-Out -8,494 Advertising Expense -45,895 -54,389 Administrative Expenses Salaries and Wages Expense -160,290 Utilities Expense -14,522 Depreciation Expense -18,495 Insurance Expense -12,330 Rent Expense -46,580 -252,217 Operating Income 62,883 Other Income Dividends 16,440 Gain on Disposal of Plant Assets 2,740 Interest Expense -6,850 12,330 Net Income 75,213