Question

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Toys "R" Us sells a variety of children's toys, games, books, and accessories. Assume that a local store has the following amounts for the month of March $2021 .$

$$\begin{array}{lrll} \text { Sales revenue } & \$ 75,800 & \text { Inventory (Mar. 31, 2021) } & \$ 1,000 \\ \text { Advertising expense } & 6,100 & \text { Insurance expense } & 2,150 \\ \text { Rent expense } & 4,000 & \text { Sales discounts } & 2,850 \\ \text { Gain on sale of building } & 7,200 & \text { Salaries expense } & 9,100 \\ \text { Inventory (Mar. 1, 2021) } & 2,650 & \text { Income tax expense } & 3,900 \\ \text { Cost of goods sold } & 35,650 & & \\ \hline \end{array}$$

Required:

1. Prepare a multiple-step income statement for the month ended March 31, 2021.

Answer 1