Question

Create an Muti Step Income Statement

SWARS Consulting & Sales and Sales Inc
PARTIALLY ADJUSTED TRIAL BALANCE
March 31 2018							Adjusting
	Part Adj T/B		March Jes		Trial	Balance	& Bank Rec	Jes	Adusted TB
	DR	CR	DR	CR	DR	CR	DR	CR	DR	CR
Cash	$   253,560.00				253,560		$       9,351.00		$   262,911.00
Accounts Receivable	$   146,800.00		$12,100.00		158,900			$12,150.00	$   146,750.00
Allowance for Uncollectible Accounts		$       2,569.00				2,569		$     471.00		$       3,040.00
Supplies	$     85,650.00				85,650				$     85,650.00
Inventory	$       2,600.00		$ 4,800.00	$ 6,000.00	1,400				$       1,400.00
Prepaid Insurance	$     16,800.00				16,800				$     16,800.00
Land	$     50,000.00				50,000				$     50,000.00
Building	$   125,500.00				125,500				$   125,500.00
Accumulated Depr – Building		$       5,670.00				5,670				$       5,670.00
Computer equipment	$     52,950.00				52,950				$     52,950.00
Accumulated Depr – Comp Equip		$       1,750.00				1,750				$       1,750.00
Office Furniture	$     85,960.00				85,960				$     85,960.00
Accumulated Depr - Office Furniture		$          890.00				890				$          890.00
Accounts Payable		$     48,526.00		$ 4,800.00		53,326	$            54.00			$     53,272.00
Interest Payable		$       3,200.00				3,200				$       3,200.00
		$       8,952.00				8,952				$       8,952.00
		$     98,505.00				98,505				$     98,505.00
Long term Note Payable		$     90,000.00				90,000				$     90,000.00
		$     60,000.00				60,000				$     60,000.00
Common Stock		$   400,000.00				400,000				$   400,000.00
Retained Earnings		$   106,468.00				106,468				$   106,468.00
Dividends	$       4,000.00				4,000				$       4,000.00
Service Revenue		$   345,650.00				345,650				$   345,650.00
Tablet Sales Revenue		$   210,250.00		$12,100.00		222,350				$   222,350.00
Cost of Goods Sold	$   165,850.00		$ 6,000.00		171,850				$   171,850.00
Bad Debt Expense							$          471.00		$          471.00
Depreciation Expense – Building	$       1,350.00				1,350				$       1,350.00
Depreciation Expense - Computer Equip	$          890.00				890				$          890.00
Depreciation Expense - Office Furn	$          650.00				650				$          650.00
Interest Expense	$       3,560.00				3,560				$       3,560.00
Insurance Expense	$     38,950.00				38,950				$     38,950.00
Supplies expense	$     72,860.00				72,860				$     72,860.00
Bank fee (expense)					75,900		$            95.00		$            95.00
Utilities Expense	$     75,900.00				198,600				$     75,900.00
Wage Expense	$   198,600.00								$   198,600.00
Misc. Expense							$       2,650.00		$       2,650.00

Answer 1

		Multi-step income statement
					$	$
	Revenue:
	Service Revenue				345650
	Tablet Sales Revenue				222350	568000
	Less: Cost of goods sold					171850
	Gross profit					396150
	Less: Operating expenses
	Bad Debt Expense				471
	Depreciation Expense – Building				1350
	Depreciation Expense - Computer Equip				890
	Depreciation Expense - Office Furn				650
	Insurance Expense				38950
	Supplies expense				72860
	Bank fee (expense)				95
	Utilities Expense				75900
	Wage Expense				198600	389766
	Operating income					6384
	Less: Non-operating expense
	Interest Expense				3560
	Misc. Expense				2650	6210
	Net income					174