Question

Question 6 In its income statement for the year ended 30 June 2018, Kembeia Company reported the following condensed data. ive expensesRM 235,000Selling expense 1,685,000Interest revenue .-RMİ 390.0001 58,000 Administrative expenses Cost of goods sold Interest expense Loss on sale of eguipment 30,000Net sales 2,580,000 8,000 Instructions a) Prepare a multiple step Statement of Profit of Loss. b) Prepare a single step Statement of Profit or Loss.

Answer 1

Ans.(a)	Kemboia Company
	Income Statement (Multi Step)
	Year Ended June 30, 2018
	Particulars				Amt.($)	Amt.($)
	Net Sales					2,580,000
	Less: Cost of Goods Sold					1,685,000
	Gross Profit					$     895,000
	Operating Expenses
	Selling Expense				390,000
	Administrative Expense				235,000
	Total Operating Expense					625,000
	Operating Income					270,000
	Non-Operating Income and Expenses
	Interest revenue				58,000
	Interest expense				(30,000)
	Loss on sale of equipment				(8,000)
	Total Non-Operating					$        20,000
	Net Income (loss)					$     290,000
Ans.(b)	Kemboia Company
	Income Statement (Single Step)
	Year Ended June 30, 2018
	Particulars				Amt.($)	Amt.($)
	Net Sales					2,580,000
	Interest Revenue					58,000
	Total Revenue					$ 2,638,000
	Less: Expenses/Losses
	Cost of Goods Sold				1,685,000
	Administrative Expense				235,000
	Interest Expense				30,000
	Loss on sale of equipment				8,000
	Selling Expense				390,000
	Total Expenses					$ 2,348,000
	Net Income (loss)					$     290,000