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Multiple-Step Income Statement Multiple-Step Income Statement Hide The income st

ID: 2452119 • Letter: M

Question

Multiple-Step Income Statement

Multiple-Step Income Statement


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The income statement above contains errors. Prepare a corrected multi-step income statement.

Curbstone Company

Income Statement

For the Year Ended August 31, 2014

Revenue from sales:

$  

$  

  

  

Net sales

$  

  

Gross profit

$  

Expenses:

$  

  

  

Total expenses

  

$  

Other income:

  

Net income

$  

Hide

The income statement above contains errors. Prepare a corrected multi-step income statement.

Curbstone Company

Income Statement

For the Year Ended August 31, 2014

Revenue from sales:

$  

$  

  

  

Net sales

$  

  

Gross profit

$  

Expenses:

$  

  

  

Total expenses

  

$  

Other income:

  

Net income

$  

Explanation / Answer

CURBSTONE COMPANY

INCOME STATEMENT

FOR YEAR ENDED 31 AUGUST 2014

Gross Sale 9669000

Less : Sales Return 422000

Less : Sales Discount 115000

Net Sales 9132000

Less : Cost of Merchandise Sold 6110000

Operating profit 3022000

Less : Overheads

Selling Expenses 800000

Administration Expenses 575000

Delivery Expenses 425000

Net profit from operating Activity 1222000

Add : Other Income

Interest Income 45000

Total profit 1267000

Note : In Question it is mention that Interest Revenue hence we assume that this is not expense its income of Company