Question

Salaries and wages expenses                     $697,500	Loss on disposal of plant assets          $125,250
Cost of goods sold                                       1,480,500	Sales Revenue                                          3,315,000
Interest expense                                          106,500	Income Tax Expense                                37,500
Interest revenue                                             97,500	Sales discounts                                        240,000
Depreciation Expense                                465,000	Utilities expense                                       165,000

I

This is the income statement for the year ended December 31, 2017, Sandhill Co. reported the following condensed data.

Prepare a multiple-step income statement. (List other revenues before other expenses.)

Answer 1

Prepare a multiple-step income statement.

Sales		3315000
Less: Sales discount		(240000)
Net Sales		3075000
Less: Cost of goods sold		(1480500)
Gross profit		1594500
Less: Operating expenses
Salaries and wages expenses	(697500)
Depreciation Expense	(465000)
Utilities expense	(165000)
Total operating expenses		(1327500)
Income from operation		267000
Non operating and other
Other revenue
Interest revenue		97500
Other expenses
Interest expenses	(106500)
Loss on disposal of plant assets	(125250)	(231750)
Income before tax		132750
Less: Income tax		(37500)
Net income		95250