Question

Multiple-Step Income Statement On March 31, 2019, the balances of the accounts appearing in the ledger of Racine Furnishings Company, a furniture wholesaler, are as follows: Accumulated Depreciation—Building $787,000 Merchandise Inventory $951,950 Administrative Expenses 547,300 Notes Payable 241,450 Building 2,567,150 Office Supplies 19,250 Cash 173,900 Salaries Payable 7,950 Cost of Merchandise Sold 3,860,900 Sales 6,581,950 Interest Expense 10,500 Selling Expenses 724,300 Kathy Melman, Capital 1,647,100 Store Supplies 89,250 Kathy Melman, Drawing 171,250 a. Prepare a multiple-step income statement for the year ended March 31, 2019.

Answer 1

Answer:

$1,438,950

Explanation:

Racine Furnishings Company

Multiple-Step Income Statement for the year ended March 31, 2019

Sales revenue $6,581,950

Less cost of goods sold ($3,860,900)

Gross profit $2,721,050

Expenses

Selling Expenses (724,300 )

Administrative Expenses (547,300)

Income from operation 1,449,450

Other expenses

Interest Expense ( 10,500)

Net income $1,438,950