9. Multistep Income Statement (21 points) Given the following information, prepa
ID: 2552986 • Letter: 9
Question
9. Multistep Income Statement (21 points) Given the following information, prepare a multistep income statement (not a single-step-maximum points for a single step will be 11) for Entity G for the year ended December 31, 2020 in good form. Accounts receivable Insurance expense Cost of goods sold Sales discounts Freight out Rent revenue (from sublease) Interest expense Casualty loss from fire set by protestors Utilities expense Salary and wages expense Sales Interest revenue Sales returns and allowances Income tax expense 75,000 3,500 621,000 45,000 20,000 13,000 9,000 3,500 4,000 36,000 1,380,000 500 150,000 96,000Explanation / Answer
Multi-Step Income Statement For The Year Ended December 31,2020
Sales Revenue
Total Sales $ 13,80,000
Less : Sales Returns ? $ 150000
Less : Sales Discounts ? $ 45000
Net Sales Revenue $ 11,85,000
Less : Cost of Goods Sold ? $ 621000
Gross Profit $ 564000
Operating Expenses
Selling Expenses
Freight-Out $ 20000
Utilities Expenses $ 4000
Administrative Expenses
Salaries & Wages $ 36000
Insurance Expenses $ 3500
Total Operating Expenses ? $ 63500
Operating Income $ 500500
Other Incomes and Expenses
Interest Revenue $ 500
Casuality loss from fire - $ 3500
Rent Revenue $ 13000
Interest Expense ? $ 9000
Net Other Incomes and Expenses $ 1000
Net Income before Tax $ 501500
Income Tax Expenses - $ 96000
Net Income After Tax $ 405500
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