Question

Te to inventory counted at the end of the year was $75.000. Excluded from the count were purchases of $5,000 in transit under FOB destination terms. 1 000 DU 29. The following data for the current year ended June 30 are from the accounting records of Zanadu Co.: Administrative expenses $ 28,750 Cost of goods sold 181,440 Interest expense 3,600 Rent revenue 1,500 534.440 Sales 65,000 Selling expenses Prepare a multiple-step income statement for the year ended June 30. Conynight Cengage Leaming. Powered by Cognero.

Answer 1

Date Description Jul-03 Accounts Receivable $3,750 Sales Revenue Cost of Goods Sold$2,000 Inventory Jul-05 Sales Returns Accounts Receivable Inventory Debit Credit Multiple Income Statement Sales Less: Cost of goods sold Gross Profit 5,34,440 -1,81,440 $3,750 3,53,000 Operating Expenses Administrative Expenses Selling Expenses Total Operating Expenses Operating Income $2,000 -28,750 $ -65,000 $ 93,750 Cost of Goods Sold 2,59,250 Jul-12 Cash $2,700 Non-operating or Other Rent Revenue Accounts Receivable Jul-17 Cost of Goods Sold $3,830 Inventory $2,700 1,500 Less: Interest Expenses Total Non operating Net Income $ $3,830 -3,600 $ Cash $7,420 -2,100 Sales Revenue $7,000 2,57,150 Sales tax liability $420