Question

Income Statement Presentation
The following income statement accounts and additional information appear on the books of Ralph Industries for the year ended March 31, 2020
Accounts  
Sales CR 985,000
Cost of Goods Sold DR 426,000   
Selling Expense DR 215,000
General and Administrative Expense DR 157,000  
Interest Expense DR 17,600
Interest Revenue CR 9,500
Loss due to write-off of an Account Receivable DR 100,000
Unusual and Infrequent Earthquake gain CR 50,000
Income on Operations of Discontinued Table Division CR 31,000
Realized Loss on Table Divisions assets DR 20,000   
Expected Gain on Disposal of remaining Table Division Assets (Not Yet recorded on books) CR 17,000
Ralph is in the 25% tax bracket

Using this information, prepare a multi-step income statement in perfect form.

Answer 1

Income Statement Particulars 1 Revenue from operabons Intexst Revenue. Total [A Expenses ($) Amount 9,85,000 9.500 9.94,500 | Cost of goods sold Secling Expenses Admins babve Expense Inteost_(finacel Expense) loss on Accounts Receivable Losson Asset T Total (B] 426.000 915,000 4,57,000. 17,600 100.000 20,000 9,35,600 58.900 50,000 L0 8200 Prolit LA-B2 Add: Extra ordinary items - Profit After Extra items! Add: Propet trom disconbinue Lo perabone PBT less ! Tax @ 25% Profit Alter Ta 31000 139,400 34.975 104,90