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In: Accounting

Accounts Debits Credits cash $41,150 Account Receivable 4,806 Allowance for Doubtful Accounts 58 Inventory 2,670...

Accounts Debits Credits

cash $41,150

Account Receivable 4,806

Allowance for Doubtful Accounts 58

Inventory 2,670

Prepaid Insurance 2,200

Land 20,000

Accounts Payable 1,500

Interest Payable 90

Payroll Taxes Payable 113

Wages Payable 817

Mortgage Payable 18,000

Owners investment 50,000

Retained Earnings -

Sales 11,680

Repair revenue 20

Cost of goods sold 3,504

Advertising 200

Bad debt expense 58

Bank charges 50

Insurance expense 200

Payroll taxes 603

Rent 2,240

Supplies 150

Wages 4,357

Interest expense 90

$82,278 $82,278

Required: Determine the net income (or net loss) of company by preparing a Multi-step income statement .

Expert Solution

Multi Step Income Statement
For the year Ended
Sales		11,680
Less : Cost of Goods Sold		3,504
Gross Profit		8,176
Other Income		20
Selling Expenditures
Advertaisement	200	200
General and Administrative Expense
Bad Debt	58
Bank Charges	50
Insurance Expense	200
Payrol Tax	603
Rent	2,240
Supplies Expense	150
Wages and Salaries	4,357	7,658
Income Before Interest and Taxes		338
Interest Expense		90
Net Income		248

ekkarill92 answered 1 year ago

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