Question

Sellall Department Stores reported the following amounts in its adjusted trial balance prepared as of its December 31 year-end: Administrative Expenses, $1,400; 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

Multistep Income Statement
Particulars				Amount	Amount
Net Sales					$ 28,960.00
Cost of goods sold					$ 17,280.00
Gross Profit					$ 11,680.00
Operating expenses:
Administrative expenses				$ 1,400.00
General expenses				$ 1,600.00
delivery Freight out expenses				$     200.00
Total operating expenses					$   3,200.00
Income from operations					$   8,480.00
Interest revenue				$     160.00
Interest expenses				$ 1,400.00	$   1,240.00
Income before tax					$   7,240.00
income tax					$   2,570.00
Net income					$   4,670.00

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