Multiple-Step Income Statement Multiple-Step Income Statement Hide The income st
ID: 2452119 • Letter: M
Question
Multiple-Step Income Statement
Multiple-Step Income Statement
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The income statement above contains errors. Prepare a corrected multi-step income statement.
Curbstone Company
Income Statement
For the Year Ended August 31, 2014
Revenue from sales:
$
$
Net sales
$
Gross profit
$
Expenses:
$
Total expenses
$
Other income:
Net income
$
Hide
The income statement above contains errors. Prepare a corrected multi-step income statement.
Curbstone Company
Income Statement
For the Year Ended August 31, 2014
Revenue from sales:
$
$
Net sales
$
Gross profit
$
Expenses:
$
Total expenses
$
Other income:
Net income
$
Explanation / Answer
CURBSTONE COMPANY
INCOME STATEMENT
FOR YEAR ENDED 31 AUGUST 2014
Gross Sale 9669000
Less : Sales Return 422000
Less : Sales Discount 115000
Net Sales 9132000
Less : Cost of Merchandise Sold 6110000
Operating profit 3022000
Less : Overheads
Selling Expenses 800000
Administration Expenses 575000
Delivery Expenses 425000
Net profit from operating Activity 1222000
Add : Other Income
Interest Income 45000
Total profit 1267000
Note : In Question it is mention that Interest Revenue hence we assume that this is not expense its income of Company
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