PROB LEM 2: Multiple Step Income Statement (13 POINTS TOTAL) The adjusted trial

Question

PROB LEM 2: Multiple Step Income Statement (13 POINTS TOTAL) The adjusted trial balance tor the year ended 12/31/20x2 shows the following information for Leinbach, Inc. (All accounts have nornal balances and are listed in random order. Sales $250,000 3,000 100,000 15,000 10,000 50,000 5,000 26,000 13,000 8,000 43,000 20,000 28,000 120,000 11,000 Unearned Revenue Common Stock Cash Accounts Receivable Retained Earnings Prepaid Insurance Advertising Expense Inventory Accounts Payable Salaries Expense Notes Payable Sales Returns Cost of goods sold Income tax expense Using only the relevant accounts, prepare a sulti-step income statement for Leinbach, Inc. for 20x2. Use good orm USE THE ANSWER SHEET FOR THIS PROBLEM

Explanation / Answer

Solution :

Multistep Income Statement - Leinbach Inc. For the year ended Dec 31, 2012 Particulars Amount Sales $250,000.00 Less: Sales returns $28,000.00 Net Sales $222,000.00 Cost of Goods Sold $120,000.00 Gross Profit $102,000.00 Less: Salaries expense $43,000.00 Income before taxes $59,000.00 Less: Income tax expense $11,000.00 Net Income $48,000.00

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