The adjusted trial balance of Pacific Scientific Corporation on December 31, 201

Question

The adjusted trial balance of Pacific Scientific Corporation on December 31, 2013, the end of the company’s fiscal year, contained the following income statement items: sales revenue, $2,106; cost of goods sold, $1,240; selling expenses, $126; general and administrative expenses, $105; interest expense, $35; and gain on sale of investments, $45. Income tax expense has not yet been accrued. The income tax rate is 40%.

Prepare a multiple-step income statement for 2013. Ignore EPS disclosures.

Prepare a multiple-step income statement for 2013. Ignore EPS disclosures.

Explanation / Answer

MultiStep Income Statement Particulars Amount Sales               2,106.00 Cost of Goods Sold               1,240.00 Gross Profit                   866.00 Operating Expenses: Admin Expenses                   105.00 Selling Expenses                   126.00 Total operating Expenses                   231.00 Operating income                   635.00 Non Operating or Other: Gain on Sale                     45.00 Interest Expense                     35.00 Total Non Operating                     10.00 Net income                   645.00 Tax @40%                   258.00 Net Income after Tax                   387.00

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