Question

S Exercise 5-07 (Part Level Submission) Presented below is information for Crane Co. for the month of January 2022. Cost of goods sold $217,400 Rent expense Freight-out 7,500 Sales discounts Insurance expense 13,800 Sales returns and allowances Salaries and wages expense 61,400 Sales revenue Income tax expense 4,100 Other comprehensive income (net of $400 tax) $34,200 9,200 17,700 390,000 Study. 2,000 (a) Your answer is partially correct. Try again. Prepare an income statement using the multiple-step format. CRANE CO. Income Statement For the Month Ended January 31, 2022 Sales Revenue 390,000

Answer 1

Multistep income statement is prepared is as follows:

                                    CRANE COMPANY

                                      Income statement

                            for the month of January 31,2022

	$	$
Sales Revenue		390,000
Less: Sales returns and allowances	17,700
Less: Sales Discounts	9,200	(26,900)
Net Sale		363,100
Cost of goods sold		217,400
Gross Margin		145,700
Operating Expenses:
Salaries and Wages Expenses	61,400
Insurance Expenses	13,800
Rent Expenses	34,200
Freight Out	7,500
Total Operating Expenses		116,900
Net Income before tax		28,800
Income Tax Expenses		4,100
Net Income		$24,700