From the adjusted trial balance for Brookstone Art Supplies given below, prepare

Question

From the adjusted trial balance for Brookstone Art Supplies given below, prepare a multiple-step income statement in good form. Brookstoue Art Supplies Adjusted Trial Balance December 31 Debit Credit S 9.400 25.000 36.000 900 75.000 Cash Acconts receivable Merchandise inventory Office supplies Store equipment Accumulated depreciation-store equipment Office equipment Accumulated depreciation-office equipment Accounts payable otes payable s 22.000 60.000 15.000 42.000 10,000 20,000 90,700 ommon stock etained earnings 48,000 ividends Sales Sales discounts Sales returus and allowances Cost of goods sold Selling expenses General aud administrative expeuses Interest expense Totals 325,000 6,000 16.500 195,000 32.500 19.800 600 524200 5524.700

Explanation / Answer

Prepare multistep income statement :

Sales 325000 Less: Sales return and allowances (16500) Less: Sales discount (6000) (22500) Net Sales 302500 Less: Cost of goods sold (195000) Gross profit 107500 Less: Operating expense Selling expense (32500) General and administrative expense (19800) (52300) Operating income 55200 Other expense and losses Interest expense (600) Net income 54600

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