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Question

Principle gage Av2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSessionlocator-assignment-take;&inpragress; ngagement Exerc eBook Calculator Video Instructions Generalized Statement Multiple-Step Income Statement the following information to prepare a multiple-step income statement, including the revenue section and the cost of or Sauter Office Supplies for the year ended December 31, 20 Sales Sales Returns and Allowances Sales Discounts Interest Revenue Merchandise Inventory, January 1, 20-- Purchases Purchases Returns and Allowances Purchases Discounts $156,849 1,481 4,178 435 27,942 111,801 4,593 2,680

Explanation / Answer

Answer

Sauter Office Supplies

Income Statement

For the year ended Dec 31, 20XX

Revenues from Sales:

Sales

$ 1,56,840.00

(-) Sales return & Allowances

$ 1,481.00

(-) Sales Discount

$ 4,178.00

$ 5,659.00

Net Sales

$ 1,51,181.00

Cost of Goods Sold:

Merchandise inventory, Jan 1

$ 27,942.00

(+) Purchases

$ 1,11,801.00

(-) Purchase Returns & Allowances

$ 4,593.00

(-) Purchase discounts

$ 2,680.00

$ 7,273.00

Net purchases

$ 1,04,528.00

(+) Freight In

$ 862.00

Cost of Goods purchased

$ 1,05,390.00

Goods Available for sale

$ 1,33,332.00

(-) Merchandise inventory, Dec 31

$ 33,025.00

Cost of Goods Sold

$ 1,00,307.00

Gross Profits/margin

$ 50,874.00

Opearing Expenses:

Wages expense

$ 27,611.00

Supplies expense

$ 760.00

Phone expense

$ 901.00

utilities expense

$ 7,997.00

insurance expense

$ 1,291.00

Miscellaneous expense

$ 575.00

Depreciation expense-Equipment

$ 3,787.00

Total Operating expenses

$ 42,922.00

Operating Profits

$ 7,952.00

Other Revenues:

Interest Revenue

$ 435.00

Other expenses:

Interest expense

$ 4,714.00

$ (4,279.00)

Net Income

$ 3,673.00