\' Carissa Communications reported the following figures from its adjusted trial

ID: 2519136 • Letter: #

Question

' Carissa Communications reported the following figures from its adjusted trial balance for its first year of business, which ended on July 31, 2016: Cash Selling Expenses Accounts Payable Common Stock Notes Payable, long-term Merchandise Inventory Administrative Expenses Sales Returns and Allowances $ 4,100 1,300 4,900 2,820 400 1,200 3,100 7,400 Cost of Goods Sold1 Equipment, net Accrued Liabilities Sales Revenue Accounts Receivable Interest Expense Sales Discounts $ 18,800 8,500 2,000 42,000 3,400 20 4,300 Prepare Carissa Communications's multi-step income statement for the year ended July 31, 2016

Explanation / Answer

Multy step Income statement

Particulars

Amount

Sales Revenue

$42,000

Less: Sales discounts

($4,300)

Less: Sales Returns and allowances

($7,400)

Net sales revenue

$30,300

Less: Cost of goods sold

($18,800)

Gross Profit

$11,500

Other Expenses:

Selling expenses

$1,300

Admin expenses

$3,100

($4,400)

Operating Income

$7,100

Less: Interest exp

($20)

Net Profit

$7,080