Question

Multiple-Step Income Statement

Instructions

Amount Descriptions

Income Statement

Instructions

Use the following information:

Sales	$166,000
Sales Returns and Allowances	1,620
Sales Discounts	3,320
Interest Revenue	3,184
Merchandise Inventory, January 1, 20--	32,600
Estimated Returns Inventory, January 1, 20--	600
Purchases	111,300
Purchases Returns and Allowances	3,600
Purchases Discounts	2,226
Freight-In	640
Merchandise Inventory, December 31, 20--	29,200
Estimated Returns Inventory, December 31, 20--	400
Wages Expense	22,000
Supplies Expense	650
Phone Expense	1,100
Utilities Expense	9,000
Insurance Expense	1,000
Depreciation Expense—Building	4,600
Depreciation Expense—Equipment	2,800
Miscellaneous Expense	214
Interest Expense	1,126

Required:

Prepare a multiple-step income statement, including the revenue section and the cost of goods sold section, for Aeito’s Plumbing Supplies for the year ended December 31, 20--.

Amount Descriptions

Amount Descriptions
Cost of goods purchased
Cost of goods sold
Goods available for sale
Gross profit
Income from operations
Net income
Net loss
Net purchases
Net sales
Total operating expenses

Income Statement

Prepare a multiple-step income statement, including the revenue section and the cost of goods sold section, for Aeito’s Plumbing Supplies for the year ended December 31, 20--.

Income Statement Instructions

Aeito’s Plumbing Supplies

Income Statement

For Year Ended December 31, 20--

1	Revenue from sales:
2
3
4
5
6	Cost of goods sold:
7
8
9
10
11
12
13
14
15
16
17
18
19
20	Operating expenses:
21
22
23
24
25
26
27
28
29
30
31	Other Revenues:
32
33	Other Expenses:
34
35

Answer 1