The following selected accounts from the Bramble Corp.’s general ledger are presented below for the year ended December 31, 2022:

Advertising expense $54,000 Interest revenue $32,000
Common stock 249,000 Inventory 66,000
Cost of goods sold 1,084,000 Rent revenue 24,000
Depreciation expense 124,000 Retained earnings 534,000
Dividends 149,000 Salaries and wages expense 674,000
Freight-out 24,000 Sales discounts 8,600
Income tax expense 69,000 Sales returns and allowances 43,000
Insurance expense 15,000 Sales revenue 2,399,000
Interest expense 69,000

Required:
Prepare a multiple-step income statement BRAMBLE CORP.

Question

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Respuesta :

Zviko Zviko · Answer 1 · 2020-10-15T04:57:10+02:00

Answer:

Bramble Corp.

Multiple-step Income Statement

$

Sales revenue 2,399,000

Sales returns and allowances (43,000)

Net Sales Revenue 2,356,000

Less Cost of goods sold (1,084,000)

Gross Profit 1,272,000

Less Operating Expenses :

Selling and Distribution Expenses

Advertising expense 54,000

Freight-out 24,000

Sales discounts 8,600 (86,600)

Administrative Expenses

Depreciation expense 124,000

Salaries and wages expense 674,000

Insurance expense 15,000 (813,000)

Net Operating Income 372,400

Less Non- Operating Expenses :

Interest revenue (32,000)

Rent revenue (24,000)

Income tax expense 69,000

Interest expense 69,000 (82,000)

Net Income/(Loss) 290,400

Explanation:

The multiple-step income statement has been prepared above.