Question

General ledgers The following selected accounts from the Tamarisk, Inc.’s general ledger are presented below for the year ended December 31, 2022:

Advertising expense		$ 57,000		Interest revenue		$ 34,000
Common stock		252,000		Inventory		69,000
Cost of goods sold		1,087,000		Rent revenue		24,000
Depreciation expense		127,000		Retained earnings		537,000
Dividends		152,000		Salaries and wages expense		676,000
Freight-out		27,000		Sales discounts		8,700
Income tax expense		72,000		Sales returns and allowances		45,000
Insurance expense		15,000		Sales revenue		2,401,000
Interest expense		71,000

Prepare a multiple-step income statement.

The following selected accounts from the Tamarisk, Inc's general ledger are presented below for the year ended December 31, 2022: Advertising expense $57,000 Interest revenue $ 34,000 Common stock 252,000 Inventory 69,000 Cost of goods sold 1,087,000 Rent revenue 24,000 Depreciation expense 127,000 Retained earnings 537,000 Dividends 152,000 Salaries and wages expense 676,000 Freight-out 27,000 Sales discounts 8.700 45,000 Income tax expense 72.000 Sales returns and allowances Insurance expense 15,000 Sales revenue 2,401,000 Interest expense 71,000 Prepare a multiple-step income statement.

Answer 1

$ 24,01,000.00 Income statement Revenues Sales revenue Less: Sales returns and allowances $ 45,000.00 Sales discount $ -8,700.00 Net sales Less: Cost of goods sold Gross profit $ -53,700.00 $ 23,47,300.00 $-10,87,000.00 $ 12,60,300.00 Operating expenses: Salaries and wages expense Insurance expense Freight out Depreciation expense Advertising expense Total operating expense Operating income $ -6,76,000.00 $ -15,000.00 $ -27,000.00 $-1,27,000.00 $ -57,000.00 $ -9,02,000.00 $ 3,58,300.00 Other Revenue Rent revenue Interest revenue Total other revenues $ $ 24,000.00 34,000.00 $ 58,000.00 Other expenses Interest expense $ 15,000.00 Income before tax Income tax expense Net income $ $ $ 4,01,300.00 -72,000.00 3,29,300.00