Question

Exercise 1 - Problem Solving (40 points) Presented below is the information for Altynai Company for the month ended January 31, 2020 Cost of goods sold 1,030,000 Rent expense 25,000 Depreciation expense 9,800 Sales discounts 13,900 Insurance expense 200,000 Sales returns and allowances 41,200 Salaries and wages expense 150,000 Sales revenue 2,700,000 Interest expense 91,500 Interest revenue 85,000 Instructions: Prepare a multi step income statement for the month ended January 31, 2020.

Answer 1

Altynai Company Income Statement For the month ended January 31, 2020 Amount(s) Amount(S) Sales Revenue $ 2,700,000 Less: Sales Discounts 13,900 Less: Sales returns and Allowance 41,200 Total salees Revenue $ 2,755,100 Less: Cost of goods sold 1,030,000 Gross Profit $ 1,725,100 Operating Expenses: Depreciation Expense 9,800 Insurance Expense 200,000 Salaries and Wages Expense 150,000 Rent Expense 25,000 Total Operating Expense $384,800 Operating Income $ 1,340,300 Interest Income 85000 Interest expense -91,500 Total Other Revenues and (Expenses) -6,500 Income before Income taxes $ 1,333,800 Less: Income tax Expense 0 Net Income $ 1,333,800