s//edugen wileyplus.com/edugen/student/mainfr.uni Kimmel, Financial Accounting,

ID: 2554945 • Letter: S

Question

s//edugen wileyplus.com/edugen/student/mainfr.uni Kimmel, Financial Accounting, 8e ice Assignment Gradebook ORION Downloadable eTextbook ment Exercise 5-6 Presented below is information for Crane Company for the month of January 2017. $204,700 Rent expense Cost of goods sold Freight-out Insurance expense Salaries and wages expense Income tax expense 8,700 Sales discounts 14,200 Sales returns and allowances 63,800 Sales revenue $34,200 9,000 17,100 395,000 2,000 4,600 Other comprehensive income (net of $400 tax) Prepare an income statement using the multi-step format. CRANE COMPANY Income Statement

Explanation / Answer

Multi step income statement

Particulars

Amount

Sales revenue

$395,000

Less: sales returns and allowances

$17,100

Les: sales discounts

$9,000

$26,100

Net sales revenue

$368,900

Less: Cost of goods sold

$204,700

Gross Profit

$164,200

Less: Operating expenses;

Freight out

$8,700

Insurance exp

$14,200

Salaries and wages

$63,800

Rent expenses

$34,200

Total

$120,900

Operating income

$43,300

Non operating income and expenses:

Add: Other comprehensive income

$2,000

Net Income

$45,300