E4-9 Multiple-step income statement On October 31, 20Y5, the balances of the acc
ID: 2512195 • Letter: E
Question
E4-9 Multiple-step income statement On October 31, 20Y5, the balances of the accounts appearing in the ledger of Quality Interiors Company, a furniture wholesaler, are as follows: Administrative Expenses $ 600,000
Building 2,000,000
Capital Stock 300,000
Cash 175,000
Cost of Merchandise sold 2,500,000
Dividends 20,000
Interest Expense 50,000
Merchandise inventory 400,000
Notes Payable 900,000
Office Supplies$ 5,000
Retained Earnings903,000
Salaries Payable 12,000
Sales 5,000,000
Sales Discounts 400,000
Sales Returns and Allowances 100,000
Selling Expenses 850,000
Store Supplies 15,000
Prepare a multiple-step income statement for the year ended October 31 20Y5
Net income should be $500,000.
Explanation / Answer
Income Statement :-
Particulars Amount($) Amount($) Sales 5000000 Less : Sales Discounts (400000) Less ; Sales Return and Allowances (100000) (500000) Net Sales 4500000 Less : Cost of goods Sold (2500000) Gross Profit 2000000 Less : Selling Expenses 850000 Less : Administrative Expenses 600000 (1450000) Operating Income 550000 Less : Interest Expenses (50000) Income Before Tax 500000Related Questions
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