An adjusted trial balance of Woods Company as of December 31, 2017 is given below. Prepare a multi-step income statement for the year for the company

Question

Debit Credit
Cash $15,000
Accounts Receivable 42,000
Merchandise Inventory 60,000
Supplies 15,000
Land 300,000
Accounts Payable $3,000
Notes Payable 25,000
Common Stock 300,000
Retained Earnings 26,000
Dividends 3,000
Sales Revenue 480,000
Sales Returns and Allowances 6,000
Sales Discounts 9,000
Cost of Goods Sold 240,000
Salaries Expense 15,000
Utilities Expense 69,000
Rent Expense 54,000
Interest Expense 6,000 _______
Totals $834,000 $834,000

What will be an ideal response

Answer 1

Sales Revenue $480,000
Less: Sales Returns and Allowances (6,000 )
Less: Sales Discounts (9,000 )
Net Sales Revenue $465,000
Cost of Goods Sold (240,000 )
Gross Profit 225,000
Operating Expenses:
Salaries Expense (15,000 )
Utilities Expense (69,000 )
Rent Expense (54,000 )
Total Operating Expenses (138,000 )
Operating Income 87,000
Other Revenues and (Expenses):
Interest Expense (6,000 )
Net Income $81,000