Question

E5-6 (similar to) 1 Income statement The current year's statement of net income for Bunie's Bumpers, Inc. is presented below in a single-step format EE ( Click the icon to view the inoome statement.) Burnie's Bumpers, Inc. Income Statement For the Year Ended December 31 Prepare a condensed, multiple-step statement of net income for Burnie's Bumpers, Inc. that includes all supporting Burnie's Bumpers, Inc. Staterment of Net Income For the Year Ended December 31 Revenues and Gains Interest Income Dividend Income Gain on Sale of Investment Securities Unrealized Gain on Trading Securities $ 905,000 375 920 6,300 6,200 L906000 49000 Less: Cost of Goods Sold Gross Profit 856000 Total Revenues and Gains Expenses and Losses Cost of Goods Sold Selling Expenses Sales Salaries Expense Advertising Expense Depreciation Expense-General $ 918,795 49,000 40,000 22,000 24,000 2,700 3,000 23,000 37,000 3,400 Office Salaries Expense Office Supplies Expense Loss on Asset Impairment Net Income

Answer 1

Burnie's Bumper Inc.

Multiple step Income Statement

For the year ended December 31

Items(	Amount	Amount
Sales		905,000
Less:- Cost of Goods Sold		(49,000)
Gross Income		856,000
Operating Expenses:-
Selling Expenses	(40,000)
Sales salaries Expenses	(22,000)
Advertising Expenses	(24,000)
Depreciation expense-General	(2,700)
Amortization Expenses-General	(3,000)
Office salaries Expenses	(23,000)
Office supplies expenses	(37,000)
Loss on Assets impairment	(3,400)
Legal fees-General	(3,500)
Accounting fees-General	(5,900)
Total Operating Expenses		(164,500)
Operating Income		691,500
Non-Operatings:-
Interest Income	375
Dividend income	920
Gain on sale of investment	6,300
Unrealized gain on Trading securities	6,200
Interest Expense	(7,000)
Total Non-Operatings		6,795
Income before Taxes		698,295
Less:- Income Tax at 45%		(314,233)
Income after Tax		384,062
Gain on discontinued operations		3,355
Net Income		387,417

Income tax=(698,295×45%)=$314,233