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-Thank you! Exercise 5-8 (Part Level Submission) In its income statement for the

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Question

-Thank you!

Exercise 5-8 (Part Level Submission) In its income statement for the year ended December 31, 2014, Gavin Company reported the following condensed data Loss on disposal of plant assets Salaries and wages expenses Cost of goods sold Interest expense Interest revenue Depreciation expenses $692,850 s 124,415 1,470,630 Sales revenue 3,292,900 37,250 238,400 163,900 105,790 Income tax expense 96,850 Sales discounts 461,900 Utilities expense (a) Prepare a multiple-step income statement. (List other revenues before other expenses.) GAVIN COMPANY Income Statement For the Year Ended December 31, 2014

Explanation / Answer

income statement for the year ended december 31, 2014

figures n $

less income tax expenses $ (37,250)

net income after tax $ 94,615

particulars amount amount sales 3,292,900 less; sales discounts (238,400) less cost of goods sold (1,470,630) gross profit 1,583,870 less operating expenses (1,318,650) salaries and wages (692,850) depreciation expenses (461,900) utilities expenses (163,900) operating income 265,220 add non operating income(interest revenues) 96,850 less non operating expenses (230,205) interest expenses (105,790) loss on disposal of plant (124,415) net income before tax 131,865