Question

19) Presented below is information for Stoyan Company, a merchandising enterprise, for the month ending May 2018. Prepare a multicolumn income statement for the accounting period. Be sure to include only the accounts relating to the income statement for a merchandising company. (15 points) Cash Accounts receivable Equipment Rent expense Insurance expense Salaries expense $500,000 $100,000 $ 40,000 $ 32,000 $ 6,000 $ 58,000 Cost of goods sold Accounts payable Stoyan Capital Freight out Net Sales Withdrawals $212,000 $ 70,000 $125,000 $ 7,000 $359,000 $ 3,000

Answer 1

Solution:

Stoyan Company
Multistep Income Statement
For the month ending May 2018
Particulars		Amount
Net Sales		$359,000.00
Cost of goods sold		$212,000.00
Gross profit		$147,000.00
Operating expenses:
Rent expense	$32,000.00
Insurance expense	$6,000.00
Salaries expense	$58,000.00
Freight out	$7,000.00
Total operating expenses		$103,000.00
Net income		$44,000.00