Question

Presented below is information for Ivanhoe Co. for the month of January 2022. Cost of goods sold $221,000 Rent expense $33,500 Freight-out 9,700 Sales discounts 8,600 Insurance expense 14,600 Sales returns and allowances 20,000 Salaries and wages expense 63,400 Sales revenue 392,500 Income tax expense 4,300 Other comprehensive income (net of $400 tax) 2,000.Prepare an income statement using the multi-step format.

Answer 1

Answer:

Sales Revenues   392,500

Sales Returns        (20,000)

Freight outs             (9,700)  

Net Sales              362,800‬

Cost of good sold (221,000)

Gross profit             141,800

Operating Expenses

Rent expense                          (33,500)

nsurance expense                   (14,600)

Salaries and wages expense (63,400)  

Operating Income                    30,300‬

Income tax expense                  (4,300)

Net Income                                26,000

Other comprehensive income    2,000

Comprehensive Income           28,000

Explanation:

the OCI is listed after-taxed thus do not change the total income tax expense

comprehensive income will be the sum of both concepts net income and OCI