value: 5.00 points The following is a listing of all of the income staterment ac

Question

value: 5.00 points The following is a listing of all of the income staterment accounts for Mulberry Street Sportswear as th appear on the adjusted trial balance as of December 31. Advertising Expense Cost of Goods Sold Delivery Expense Insurance Expense Income Tax Expense Rent Expense Interest Expense Sales Revenue Sales Discounts Sales Returns and Allowances $10,100 87,600 4,000 800 6,920 11,600 1,300 160,500 9,100 18,700 Required: a. Prepare a multistep income statement. Mulberry Street Sportswear Income Statement For the year ended December 31 Net Sales

Explanation / Answer

a) Multistep income statement :

2 Gross profit percentage = 45100*100/132700 = 34.0%

Sales revenue 160500 Sales return and allowance (18700) Sales discount (9100) (27800) Net Sales 132700 Less: Cost of goods sold (87600) Gross profit 45100 Advertising expense (10100) Delivery expense (4000) Insurance expense (800) Rent expense (11600) Total selling and administrative expense (26500) Income from operation 18600 Other income & expense Interest expense (1300) Income before tax 17300 Less: Income tax (6920) Net income 10380

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