Question

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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: Account Titles Debits Credits Cash $ 61,970 Accounts Receivable 25,600 Inventory 93,500 Property and Equipment 69,000 Accumulated Depreciation $ 29,000 Liabilities 43,300 Common Stock 128,000 Retained Earnings, January 1 15,400 Sales Revenue 267,500 Sales Returns and Allowances 8,900 Sales Discounts 11,800 Cost of Goods Sold 143,600 Salaries and Wages Expense 24,600 Office Expense 25,600 Interest Expenses 3,900 Income Tax Expense 14,730

Totals $ 483,200 $ 483,200

9.value: 2.00 pointsRequired information 2. Prepare a multistep income statement that would be used for external reporting purposes, beginning with the amount for Net Sales.

Answer 1

Preparation Of Multistatement Account	Amount ($)	Amount ($)
				Net Sales=
Net Sales		246300			Sales	267500
Less:Cost of Goods Sold		143600			Sales Returns	-8900
Gross Profit		102700			Sale Discount	-11800
Less:Operating Expenses						246300
Salaries and Wages		24600
Office Expenses		25600
Income from operations		52500
Less:Other Expenses
Interest Charges		3900
Income before Income taxes		48600
Less:Income Tax Expenses		14730
Net Income		33870