Question
In: Accounting
Multistep income statement
Below is a partial listing of the adjusted account balances of yates Co at year end on december 31 ,2018
Cost of Goods sold-$ 212,000
Freight out- $7,000
insurance expense-$ 12,000
Rent expense- $32,000
Salaries Expense-$62,000
Sales Discount-$ 8,000
Sales Return and allowances-$ 17,000
Sales-$ 370,000
Prepare a multi step Income statement .assume 25% income tax rate.
Solutions
Expert Solution
| Income Statement | ||
| Sales | $370,000 | |
| Less | ||
| Sales return and allowances | $17,000 | |
| Sales Discount | $8,000 | |
| Net Sales | $345,000 | |
| Cost of Goods sold | $212,000 | |
| Gross Margin | $133,000 | |
| Operating Expenses | ||
| Freight out | $7,000 | |
| Insurance Expense | $12,000 | |
| Salary expense | $62,000 | |
| Rent Expense | $32,000 | |
| Total operating Expenses | $113,000 | |
| Net income Before Tax | $20,000 | |
| Income Tax Expense | $5,000 | |
| Net Income | $15,000 | |
Net Income - 15,000
saddam TK answered 3 years agoRelated Solutions
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