Question

Sellall Department Stores reported the following amounts in its adjusted trial balance prepared as of its December 31 year-end: Administrative Expenses, $1,500; Cost of Goods Sold, $17,820; Income Tax Expense, $2,630; Interest Expense, $1,400; Interest Revenue, $160; General Expenses, $1,700; Net Sales Revenue, $29,865; and Delivery (freight-out) Expense, $210.
Prepare a multistep income statement for distribution to external financial statement users.
SELLALL DEPARTMENT STORES
Income Statement
For the Year Ended December 31
Cost of Goods Sold 21,060
Gross Profit
Operating Expenses 4,670
Income from Operations
Interest Revenue 180
Income before Income Tax Expense
Net Income $

Answer 1

Answer:

Particulars                            Amount

Net sales                               $29,865

Cost of goods sold               $17,820

Gross profit                           $12,045

Selling, gen & admin exp.    $1,710  (1,500+210)

Operating Expenses             $1,700

Operating Income                $15,455

Interest Expenses                 ($1,400)

Interest Revenue                   $160    

Income before tax                $14,215

Income tax expenses            $2,630

Net Income                            $11,585