Question

I need assistance creating a multi step income statement.
On November 1, 2022, Teal Mountain had the following account balances. The company uses the perpetual inventory method. Cash Accounts Receivable Supplies Equipment Debit $13,500 Accumulated Depreciation-Equipment 3,360 Accounts Payable 1,290 Unearned Service Revenue 37,500 Salaries and Wages Payable $55,650 Common Stock Retained Earnings Credit $1,500 5,100 6,000 2,550 30,000 10,500 $55,650 During November, the following summary transactions were completed. Nov. 8 Paid $5,325 for salaries due employees, of which $2,775 is for November and $2,550 is for October. 10 Received $2,850 cash from customers in payment of account. 11 Purchased merchandise on account from Dimas Discount Supply for $12,000, terms 2/10, n/30. 12 Sold merchandise on account for $8,250, terms 2/10, n/30. The cost of the merchandise sold was $6,000. 15 Received credit from Dimas Discount Supply for merchandise returned $450. 19 Received collections in full, less discounts, from customers billed on sales of $8,250 on November 12. 20 Paid Dimas Discount Supply in full, less discount. 22 Received $3,450 cash for services performed in November. 25 Purchased equipment on account $7,500. 27 Purchased supplies on account $2,550. 28 Paid creditors $4,500 of accounts payable due. 29 Paid November rent $562. 29 Paid salaries $1,950. 29 Performed services on account and billed customers $1,050 for those services. 29 Received $1,013 from customers for services to be performed in the future.

Answer 1

TEAL MOUNTAIN Income Statement For the Month Ended November 30, 2022 Revenue: Sales revenue $8,250 Less: Sales discounts $165 Net sales revenue Service revenue Total revenue Less: Cost of goods sold Gross profit Operating expenses: Selling and administrative expenses: Salaries and wages expense $5,475 Supplies expense $1,440 Rent expense $562 Depreciation expense $375 Total operating expenses Net income $8,085 $10,538 $18,623 $6,000 $12,623 $7,852 $4,771