Question

The adjusted trial balance of McCoy Company included the following selected accounts: Debit Credit Sales Revenue Sales Returns and Allowances Sales Discounts Cost of Goods Sold Freight-Out Advertising Expense Interest Expense Salaries and Wages Expense Utilities Expense Depreciation Expense Interest Revenue $645,000 $50,000 9,500 396,000 2,000 15,000 19,000 84,000 23,000 3,500 25,000 Use the above information to prepare a multiple-step income statement for the year ended December 31, 2017. (List other revenues before other expenses.) MCCOY COMPANY Income Statement For the Year Ended December 31, 2017

Answer 1

Answer:

McCoy Company
Income statement
for the year ended December 31, 2017.
	Amount($)	Amount($)
Direct income
Sales Revenue	6,45,000
Less- Sales discount	9,500
Less- Sales Returns and Allowances	50,000	5,85,500
Cost of Goods Sold		3,96,000
Gross profit		1,89,500
Less- Selling expense
Freight-Out	2,000
Advertising Expense	15,000	17,000
Less- General and Administrative expense
Salaries and Wages Expense	84,000
Utilities Expense	23,000
Depreciation Expense	3,500	1,10,500
Income from Operations		62,000
Other Revenues & Gains
Interest Revenue		25,000
Other Expenses & Losses
Interest Expense		-19,000
Net Income before tax		68,000