Question

Using the following information prepare a single and multistep income statement. Cost of goods sold $1680.00, General Expense $900.00, Interest Expense $420.00, Interest Income $180.00, Net sales $4,800.00, selling expense $1,110.00.

Answer 1

1.Single step income statement :

Revenues and Gains(A) :

Net sales $4,800

Interest Income   $180

Total $4980

Expenses and losses(B) :

Cost of goods sold $1680

General Expense $900

Interest Expense $420

selling expense $1,110

Total $4110

Net Income(A-B) $870

2.Multi step income statement :

Sales 4800

Less: COGS (1680)

Gross Profit 3120

Less: Operating Expenses(900+1110) (2010)

Operating Income 1110

Add: Interest Income 180

Less: Interest Expense (420)

Net income 870

Thanks....