Question

Sellall Department Stores reported the following amounts in its adjusted trial balance prepared as of its December 31 year-end: Administrative Expenses, $2,400; Cost of Goods Sold, $17,280; Income Tax Expense, $2,570; Interest Expense, $1,400; Interest Revenue, $160; General Expenses, $1,600; Net Sales Revenue, $28,960; and Delivery (freight-out) Expense, $200. Prepare a multistep income statement for distribution to external financial statement users.

Answer 1

Ans.	Sellall Department Store
	Income Statement
	December, 31
	Sales				$     28,960
	Less: Cost of Goods Sold				17,280
	Gross Profit				$     11,680
	Operating Expenses
	Administrative Expenses			2,400
	General Expenses			1,600
	Delivery (Freight Out) Expenses			200
	Total Operating Expenses				$       4,200
	Income from Operations				$       7,480
	Other Income and Gain
	Interest Revenue			160
	Other Expense and Losses
	Interest Expense			(1,400)	$     (1,240)
	Income Before Income Tax				$       6,240
	Income Tax Expense				2,570
	Net Income				$       3,670