Question

Sellall Department Stores reported the following amounts in its adjusted trial balance prepared as of its December 31 year-end: Administrative Expenses, $1,600; Cost of Goods Sold, $18,360; Income Tax Expense, $2,680; Interest Expense, $1,400; Interest Revenue, $160; General Expenses, $1,800; Net Sales Revenue, $30,770; and Delivery (freight-out) Expense, $220.

Prepare a multistep income statement for distribution to external financial statement users.

Answer 1

• Multi Step Income Statement, as asked

Income Statement
For the year ended 31 Dec
Net Sales revenue		$           30,770.00
Cost of Goods Sold		$           18,360.00
Gross Profits		$          12,410.00
Operating Expenses:
Selling Expenses (Delivery expense)	$                  220.00
Administrative expense	$              1,600.00
General Expenses	$              1,800.00
Total Operating Expense		$             3,620.00
Operating Income		$             8,790.00
Other Revenues & Expenses:
Interest Revenue	$                  160.00
Interest Expenses	$            (1,400.00)	$           (1,240.00)
Net Income before income tax expense		$             7,550.00
Income Tax Expense		$             2,680.00
Net Income after tax		$             4,870.00