Question

The junior accountant of the Munira Company, a major merchandiser, had documents relating to the following financial data in June 2020: Sales of merchandise were AED 2,400,000, advertising expenses were 240,000, sales discounts were 160,000, depreciation of equipment was 20,000, sales returns were AED 40,000, administrative expenses were 400,000, cost of goods sold were 800,000, sales commissions were 100,000. (Hint: selling expenses include all expenses related to sales)

Required:

Prepare a Multiple step income statement for June 30, 2020

Answer 1

Income Statement [Multi-step]
for the Month Ended June 30,2020
Sales	2,400,000
Sales discount	-160,000
Sales returns	-40,000
Net sales		2,200,000
Cost of goods sold		800,000
Gross profit		1,400,000
Operating expenses;
Advertising expense	240,000
Depreciation expense	20,000
Administrative expenses	400,000
Sales commissions	100,000
Total operating expenses		760,000
Net income		640,000

answered by: anonymous