1.SABB provided the following partial-trial balance for the current year. Prepar
ID: 2484778 • Letter: 1
Question
1.SABB provided the following partial-trial balance for the current year. Prepare a multi-step income statement for the year ended December 31. SABB is subject to a 40% income tax rate.
SABB
Partial Trial Balance (Selected Accounts)
For the Year Ended December 31
Accounts
Debit
Credit
Dividends
$2,460
Sales
$225,400
Dividend Income
3,830
Interest Income
1,450
Gain on Disposal of Plant Assets
14,810
Unrealized Gain on Trading Investments
7,270
Cost of Goods Sold
90,100
Office Supplies Expense
4,500
Sales Salaries Expense
8,390
Selling Expenses
11,210
Accounting and Legal Fees—General Expense
2,400
Advertising Expense
6,660
Office Salaries Expense
21,480
Depreciation Expense—General Expense
18,600
Interest Expense
2,570
Loss on Asset Impairment
1,840
SABB
Partial Trial Balance (Selected Accounts)
For the Year Ended December 31
Accounts
Debit
Credit
Dividends
$2,460
Sales
$225,400
Dividend Income
3,830
Interest Income
1,450
Gain on Disposal of Plant Assets
14,810
Unrealized Gain on Trading Investments
7,270
Cost of Goods Sold
90,100
Office Supplies Expense
4,500
Sales Salaries Expense
8,390
Selling Expenses
11,210
Accounting and Legal Fees—General Expense
2,400
Advertising Expense
6,660
Office Salaries Expense
21,480
Depreciation Expense—General Expense
18,600
Interest Expense
2,570
Loss on Asset Impairment
1,840
Explanation / Answer
Income statement sales 225400 cost of goods sold 90100 gross profit 135300 operating expenses 73240 office supplies 4500 sales salaries expenses 8390 selling expenses 11210 accounting and legal fee 2400 advertising 6660 office salaries 21480 depreciation 18600 operating profit 62060 non operating and other 22950 interest expenses -2570 loss on asset impairment -1840 Dividend Income 3,830 Interest Income 1,450 Gain on Disposal of Plant Assets 14,810 Unrealized Gain on Trading Investments 7,270 Net income 85010
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