Question

The following selected accounts from the Blue Spruce Corp's general ledger are presented below for the year ended December 31, 2022: Advertising expense Common stock Cost of goods sold Depreciation expense Dividends Freight-out Income tax expense Insurance expense Interest expense $63.000 Interest revenue 258.000 Inventory 1,093.000 Rent revenue 133,000 Retained earnings 158,000 Salaries and wages expense 33.000 Sales discounts 78.000 Sales returns and allowances 15,000 Sales revenue 77.000 $40.000 75.000 24.000 543,000 682,000 9.600 51.000 2,407.000 Prepare a multiple-step income statement.

Answer 1

Blue Spruce Corp.
Income Statement
At December 31, 2022
Revenues
Sales revenue		2,407,000
Less:
Sales discount	9,600
Sales return and allowance	51,000
		-60,600
Net Sales		2,346,400
Cost of goods sold		-1,093,000
Gross profit		1,253,400
Operating Expenses:
Advertising expense	63,000
Depreciation expense	133,000
Freight out	33,000
Insurance expense	15,000
Salaries and wages expense	682,000
Total operating expenses		-926,000
Operating Profit		327,400
Other revenues:
Interest revenue	40,000
Rent revenue	24,000
		64,000
Other expenses:
Interest expense		-77,000
Profit before tax		314,400
Income tax expense		-78,000
Net income		$236,400

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