Question

Sellall Department Stores reported the following amounts in its adjusted trial balance prepared as of its December 31 year-end: Administrative Expenses, $2,600; Cost of Goods Sold, $23,760; Income Tax Expense, $3,170; Interest Expense, $1,600; Interest Revenue, $200; General Expenses, $2,800; Net Sales Revenue, $39,820; and Delivery (freight-out) Expense, $320.

Prepare a multistep income statement for distribution to external financial statement users.

SELLALL DEPARTMENT STORES Income Statement For the Year Ended December 31selected answer correct Net Salesselected answer correct $39,820selected answer correct Interest Revenueselected answer incorrect 200selected answer incorrect not attempted 40,000selected answer incorrect Cost of Goods Soldselected answer incorrect 23,760selected answer incorrect not attempted not attempted Gross Profitselected answer incorrect 16,260selected answer incorrect Delivery Expenseselected answer incorrect 320selected answer incorrect Utilities Expenseselected answer incorrect 2,600selected answer incorrect Loss before Income Tax Expenseselected answer incorrect 1,600selected answer incorrect not attempted 9,540selected answer incorrect Income Tax Expenseselected answer correct 3,170selected answer correct Net Incomeselected answer correct $6,370selected answer incorrect

Answer 1

SELLALL DEPARTMENT STORES
Income Statement
Dec-31
Revenues
Sales revenue		39,820
Cost of goods sold		-23,760
Gross profit		16,060
Operating expenses:
Administrative expense	-2,600
Delivery (freight-out) Expense	-320
General expense	-2,800
Total Operating expenses		-5,720
Operating Profit		10,340
Other revenues:
Interest revenue	200
Other expenses:
Interest expense	-1,600
		-1,400
Profit before tax		8,940
Income tax expense		-3,170
Net Income		5,770