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 allowance16,500    22,500
  Net sales?$302,500
Cost of goods sold?195,000
Gross profit?107,500
Operating expenses??
  Selling expenses32,500?
  General and administrative expenses19,800?
  Total operating expenses?52,300
Income from operations?55,200
Other expenses??
  Interest expense?    600
Net income?$ 54,600
???

Business

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