Question

et Ch. 60 Varques Cardinal Connect Ch 2 Por A Werchandising Help Save & Exh Submit of 2 Required information The following information applies to the questions displayed below.] Psymon Company, Inc., sells construction equipment. The annual fiscal period ends on December 31. The following adjusted trial balance was created from the general ledger accounts on December 31 Credits Debits $ 50,440 21,200 77.000 58,000 ances Account Titles Cash Accounts Receivable Inventory Property and Equipment Accumulated Depreciation Accounts Payable Common Stock Retained Earnings, January 1 Sales Revenue Cost of Goods Sold Salaries and Wages Expense Office Expenses Interest Expense Income Tax Expense Totals $ 24,400 35.6ee 106.ee 13,200 200,600 117,200 20.200 21,200 2,800 $379,800 $379,800 Required: 1. Prepare a multistep income statement that would be used for external reporting purposes. TIP: Some of the accounts listed w appear on the balance sheet rather than the income statement < Prev 8 9 of 11 !!! Next >

Answer 1

Multi-step Income Statement is an statement in which shows the gross profit (Sales less Cost of good sold) and operating profit (gross profit less operating expenses)

Ans 1 Psymom Compnay Inc Income Statement For the year ended Dec 31 Particulars Amount Amount Sales Revenue $2,00,600 Less: Cost of Good Sold ($1,17,200) Gross Profit $83,400 Less: Selling, and Administrative Exp Salaries and Wages Expenses $20,200 Office Expenses $21,200 Total Selling and Administrative Exp ($41,400) Operating Income $42,000 Less: Other Expense Interest Expense ($2,800) Net Income before tax $39,200 Less: Income Tax Expense ($11,760) Net Income after tax $27,440