Question

E5-5 (similar to) Income statement The current years statement of net income for Max Mops, Inc. is presented below in a single-step format. EEB (Click the icon to view the income statement.) Requirement Prepare Max Mops income statement using a multiple-step format Max Mops, Inc. Income Statement For the Year Ended December 31 Prepare Max Mops, mumpi-step income statement for the current year, one section at a time. (List parentheses or a minus sign to enter other expenses or a loss) subhead Revenues and Gains $ 890,000 Max Mops, Inc Statement of Net Income For the Year Ended December 31 Interest Income Dividend Income Gain on Sale of Investment Securities Unrealzed Gain on Trading Securities 5,100 Less: Total Revenues and Gains Expenses and Losses Cost of Goods Sold Seling Expenses Sales Salaries Expense Advertising Expense $ 902,745 $ 61,000 2.700 Office Salaries Expense Office Supples Expense Loss on Asset lmpairment 37,000

Answer 1

Ans:

Max Mops ,Inc.
Statement Of Net Income
For The Year Ended December 31
Particulars	Amount	Amount
Sales	$890,000
Less:Cost of Goods Sold	($61,000)
Gross Profit		$829,000
Operating Expenses
Selling Expenses:
Selling Expenses	($50,000)
Sales Salaries Expenses	($26,000)
Advertising Expenses	($22,000)	($98,000)
General And Administrative Expenses
General Expenses	($7,200)
Office Supplies Expenses	($37,000)
Office Salaries Expenses	($19,000)
Depreciation Expenses	($2700)
Amortisation Expenses	($2200)	($68,100)
Operating Income		$662,900
Other Revenues and Gains
Interest Income	$525
Dividend Income	$920
Unrealised Gain On Trading Securities	$6200
Gain On sale of Investment Securities	$5100	$12,745
Other Expenses and Losses
Interest Expenses	($7000)
Loss On asset Impairment	($5000)	($12,000)
Income from Continuing Operations before tax		$663,645
Income tax Expenses		$199,094
Income from Continuing Operations		$464,551
Discontinues Operation
Gain On discontinued Operation, Net of Tax		$3710
Net Income		$468,261

Working Notes
Net Operating Income after tax,, Discontinues Operation
Net Gain after Tax	$3710
Net Gain before tax (3710*100/70)	$5300
Income Taxes at($5300*30/100)	$1590
Operating Gain from Discontinued operations	$5300