Prepare a multi-step income statement for surrey company. from the following data for the year ended December 31, 2008.
Sales 915,000
Cost of merchandise sold 670,000
Administrative expenses 30,000
Interest expense 12,000
Rent revenue 19,000
Sales returns and allowances 55,000
Selling expenses 120,000
Answer:
| Surry Company | |
| Multiple step Income Statement | |
| For Year Ended December 31, 2008 | |
| Revenue: | |
| Sales | 915000 |
| less | |
| sales RNA | 55000 |
| Net Sales | 860000 |
| less Cost of Merch Sold | 670000 |
| Gross Profit | 190000 |
| Operating Expenses: | |
| Selling Expenses | 120000 |
| Administrative Expeses | 30000 |
| Total operating expenses | 150000 |
| Income from operations | 40000 |
| Other Expenses and Revenue: | |
| Plus Rent Revenue | 19000 |
| Minus Interest Expense | 12000 |
| NET INCOME: | 47000 |
