Question

The following information was taken from Riddell Ltd's adjusted trial balance as at April 30, 2020: Sales revenue Interest revenue Utilities expense Insurance expense Cost of goods sold Distribution expenses Administration expenses Depreciation expense Interest expense Income tax expense Dividends declared-Common shares Dividends declared-Preferred shares $1,054,300 8,200 20,000 9,000 400,634 243,366 93,000 62,000 14,400 58,600 16,700 21,700

Answer 1

	INCOME STATEMENT
	IN MULTIPLE STEP FORM
	Particulars	Amount	Amount
	Sales Revenue		$ 10,54,300
	Less : Cost of Goods Sold		$    4,00,634
	Gross Profit		$    6,53,666
	Less : Operating Expenses
	Utilities Expenses	$         20,000
	Insurance Expenses	$           9,000
	Distribution expenses	$     2,43,366
	Administrative expenses	$         93,000
	Depreciation expenses	$         62,000
			$    4,27,366
	Operating Income		$    2,26,300
	Non- Operarting and others
	Interest Revenue	$           8,200
	Interest Expenses	$       -14,400
			$        -6,200
	Net Income before Taxes		$    2,20,100
	Less : IncomeTaxes		$        14,400
	Income After taxes		$    2,05,700