The following selected accounts from the Marigold Corp.\'s accounting records ar
ID: 2558255 • Letter: T
Question
The following selected accounts from the Marigold Corp.'s accounting records are presented below for the year ended December 31. 2017 Advertsing expenee 48,400 Common stock Cost of gcods sold954,900 nterest revenue 26,400 220,000 Inwantory 58,960 1.120 470,800 Rent revenue 110,000 Ratainad arnings Dividends Fraight-out Income tax expense Insurence expense Interest expense 32,000 Salaries and wages expense 394,000 7,490 36,090 2.112.000 22,000 Sales discounts 1,600 Sales returns and allowances 13.200 Sales revenue Propare a multiple-step income statement.Explanation / Answer
Multiple step income statement
Revenue Sales revenue 2112000 Less: Sales return and allowance (36080) Sales discount (7480) (43560) Net Sales revenue 2068440 Cost of goods sold (954800) Gross profit 1113640 Operating expense Salary and wages expense (594000) Advertising expense (48400) Depreciation expense (110000) Freight out (22000) Insurance expense (13200) Total operating expense (787600) Income from operation 326040 Other revenue and gains Rent revenue 21120 Interest revenue 26400 Other expense and losses Interest expense (61600) (14080) Income before tax 311960 Les: Income tax (61600) Net income 250360