Sellall Department Stores reported the following amounts in its adjusted trial b

Question

Sellall Department Stores reported the following amounts in its adjusted trial balance prepared as of its December 31 year-end: Administrative Expenses, $1,600; Cost of Goods Sold, $18,360; Income Tax Expense, $2,680; Interest Expense, $1,400; Interest Revenue, $160; General Expenses, $1,800; Sales Revenue, $34,000; Sales Discounts, $1,700; Sales Returns and Allowances, $1,530; and Delivery (freight-out) Expense, $220.

Sellall Department Stores reported the following amounts in its adjusted trial balance prepared as of its December 31 year-end: Administrative Expenses, $1,600; Cost of Goods Sold, $18,360; Income Tax Expense, $2,680; Interest Expense, $1,400; Interest Revenue, $160; General Expenses, $1,800; Sales Revenue, $34,000; Sales Discounts, $1,700; Sales Returns and Allowances, $1,530; and Delivery (freight-out) Expense, $220.

Explanation / Answer

Multistep Income Statement for SellAll Department Stores as on December 31 $ $ Direct Income less Expenses Sales Revenue 34000 Less : Sales Discounts 1700 Less : Sales Returns and Allowances 1530 3230 Adjusted Sales Revenue 30770 Cost of Goods Sold 18360 Delivery (freight out expense) 220 18580 Gross Profit 12190 Indirect Income Interest Revenue 160 12350 Indirect Expenses Administrative Expenses 1600 General Expenses 1800 3400 Net Profit before Interest and Taxation 8950 Interest Expense 1400 Net Profit before Taxation 7550 Income Tax Expense @ 35.5% 2680 Retained Earnings 4870

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