From the adjusted trial balance for Brookstone Art Supplies given below, prepare a multiple-step income statement in good form.Brookstone Art SuppliesAdjusted Trial BalanceDecember 31?DebitCreditCash$9,400?Accounts receivable25,000?Merchandise inventory36,000?Office supplies900?Store equipment75,000?Accumulated depreciation-store equipment?$22,000Office equipment60,000?Accumulated depreciation-office equipment?15,000Accounts payable?42,000Notes payable?10,000A. Brookstone, Capital?110,700A. Brookstone, Withdrawals48,000?Sales?325,000Sales discounts6,000?Sales returns and allowances16,500?Cost of goods sold195,000?Selling expenses32,500?General and administrative expenses19,800?Interest expense600?Totals $524,700$524,700???
What will be an ideal response?
Brookstone Art Supplies Income Statement For the year ended December 31 | ||
Sales | ? | $325,000 |
Less: Sales discounts | $ 6,000 | ? |
Sales returns and allowance | 16,500 | 22,500 |
Net sales | ? | $302,500 |
Cost of goods sold | ? | 195,000 |
Gross profit | ? | 107,500 |
Operating expenses | ? | ? |
Selling expenses | 32,500 | ? |
General and administrative expenses | 19,800 | ? |
Total operating expenses | ? | 52,300 |
Income from operations | ? | 55,200 |
Other expenses | ? | ? |
Interest expense | ? | 600 |
Net income | ? | $ 54,600 |
? | ? | ? |
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