Question

Technology Inc.
December 31, 2017
Account Title	Debit	Credit
Sales revenue		780,000
Interest revenue		12,750
Rent expense	9,200
Cost of Goods Sold	491,000
Interest expense	18,250
Miscellaneous Expense	12,000
Salaries expense	90,000
Marketing /Selling expense	27,000
Depreciation expense	30,000
Insurance Expense	26,500
Bad Debt Expense	8,600
Gain on Sale of Investment		37,000
Loss on Sale of Equipment	5,250
Unrealized Gain on Securities Held for Resale	1,686
Loss on Foreign Currency Translation	(3,500)
Loss from Operations of Discontinuing business component	35,000
Loss on disposal of Discontinued business	16,000
Tax Rate 30%
50,000 shares of common stock were outstanding throughout the year

prepare a multistep income statement

Answer 1

Technology Inc
Multi-Step Income Statement
For the period ending December 31, 2017
Particulars	Amount
Sales	780,000
Cost of Goods Sold	(491,000)
Gross Profit	289,000
Operating expense
Selling Expense
Marketing Expense	(27,000)
General and Administrative Expenses
Rent Expense	(9,200)
Miscellaneous Expense	(12,000)
Salaries Expense	(90,000)
Depreciation expense	(30,000)
Insurance Expense	(26,500)
Bad Debt expense	(8,600)
Total Operating Expenses	(203,300)
Operating Income	85,700
Non Operating/Others
Total Non Operating Items
Interest Revenue	12,750
Interest Expense	(18,250)
Gain on sale of Investment	37,000
Loss on sale of Equipment	(5,250)
Unrealised gain	1,686
Loss on foreign currency translation - Gain	3,500
Loss from operations of discontinuing disposal	(35,000)
Loss on disposal	(16,000)
Total Non Operating	(19,564)
Income before Income Tax (Operating + Non Operating)	66,136
Income Tax @ 30%	(19,840.80)
Income after Income Tax	46,295.20
Net Earning per share ( 50,000 Shares)	0.93