Question

Jones had the following items on the trial balance at December 31: Administrative expense 50,000 Cost...

Jones had the following items on the trial balance at December 31:

Administrative expense 50,000
Cost of goods sold 30,000
Interest expense 100,000
Provision for income tax 10,000
Sales 600,000
Selling expense 60,000
Unearned rent 6,000

Prepare a multi-step income statement.

Homework Answers

Answer #1
Multi step Income Statement
Particulars Amount Amount
Sales $600000
Less: Cost of Goods Sold $30000
Gross Profit $570000
Less: Opetating Expenses
          Administrative Expense 50000
           Selling Expense 60000
Total Operating Expenses ($110000)
Operating Income $460000
Less: Interest Expense $100000
Net Income before taxes $360000
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