Question

LUS Support Question 6 View Policies Current Attempt in Progress The following selected accounts from the Pina Colada Corp's general ledger are presented below for the year ended December 31, 2022 Advertising expense $56,000 Interest revenue $ 33,000 Common stock 251,000 Inventory 68,000 Cost of goods sold 1,086,000 Rent revenue 24,000 Depreciation expense 126,000 Retained earnings Dividends 151,000 Salaries and wages expense Freight-out 26,000 71,000 15,000 Income tax expense 536,000 675,000 8,800 44,000 2,400,000 Sales discounts Sales returns and allowances Sales revenue Insurance expense Interest expense 70,000 Prepare a multiple-step income statement Pina Colada Corp Income Statement

Answer 1

Answer:

Multi-step income statement:

Pina Colada Corp.
Income Statement
For the year ended December 31,2022
Sales revenue:
Sales revenue		$2,400,000
Less:
Sales discounts	$8,800
Sales returns and allowances	$44,000	($52,800)
Net sales		$2,347,200
Cost of goods sold		($1,086,000)
Gross profit		$1,261,200
Operating expenses:
Depreciation expense	$126,000
Salaries and wages expense	$675,000
Insurance expense	$15,000
Freight-out	$26,000
Advertising expense	$56,000
Total operating expenses		($898,000)
Operating income		$363,200
Non-operating income:
Interest revenue	$33,000
Rent revenue	$24,000	$57,000
Non-operating expenses:
Interest expense		($70,000)
Income before income tax		$350,200
Income tax expense		($71,000)
Net income		$279,200