Question

skartie Cameron Selected Portions of Comprehensive Problem 4, page 600-601 pue 1/29 o s After all of the transactions for the ycar ended December 31, 20Y8 had been posted (including all adjustinghlp) entries, the data that follow were taken from the records of Equinox Products. Income statement data: (Aa SS Advertising expense $ 150,000 3,700,000 30,000 30,000 100,000 140,500 21,000 30,000 7,500 14,000 50,000 170,000 10,000 5,313,000 185,000 385,000 21,000 Cost of goods sold Delivery expense Depreciation expense-office buildings and equipment Depreciation expense-store buildings and equipment Income tax expense Interest expense Interest revenue Miscellaneous administrative expense Miscellaneous selling expense Office rent expense Office salaries expense Office supplies expense Sales Sales commissions Sales salaries expense Store supplies expense Instructions: A. Prepare a multiple-step income statement for the year ended December 31, 20Y8.

Answer 1

Solution:

Income statement
Particulars	USD
Sales	5313000
Cost of goods sold	3700000
Gross Profit	1613000
Adminstrative expense	258500
Selling expenses	764000
Depreciation	60000
EBIT	530500
Interest income	9000
EBT	539500
Tax	140500
Profit after tax	399000
	USD
Advertising	150000
Delivery expense	30000
Sales commissions	185000
Sales salary expense	385000
Miscellaneous sales expense	14000
Selling expense	764000
Depreciation- office buildings	30000
Depreciation-store buildings	30000
Depreciation	60000
Store supplies	21000
Office rent expense	50000
Office supplies	10000
office salary expense	170000
Miscellaneous adminstrative expense	7500
	258500
	USD
Interest income	30000
Interest expense	21000
Net interest income	9000