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corrected multi-step Income statement.

corrected multi-step Income statement.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following Income statement was prepared by an office clerk hired for July. As the accounting supervisor, you recognize that it is incorrect and prepare a corrected multi-step Income statement. Demo Sales Income Statement For Month Ended July 31, 2020 Sales $562,140 37,000 18,000 Accounts receivable Unearned sales Net sales $617,140 Operating expenses: Accumulated depreciation, equipment Advertising expense $ 30, 000 Cost of goods sold Depreciation expense, equipment 14,000 394, 000 3,000 Insurance expense 2,500 Interest expense 1, 700 Interest payable Jen Conway, withdrawals Office supplies 250 14, 000 9,000 Prepaid insurance Prepaid rent 14,000 25,000 5,000 Rent expense Salaries payable 175,000 Sales discounts 2,80e 690, 250 Loss $ 73,110
Transcribed Image Text:The following Income statement was prepared by an office clerk hired for July. As the accounting supervisor, you recognize that it is incorrect and prepare a corrected multi-step Income statement. Demo Sales Income Statement For Month Ended July 31, 2020 Sales $562,140 37,000 18,000 Accounts receivable Unearned sales Net sales $617,140 Operating expenses: Accumulated depreciation, equipment Advertising expense $ 30, 000 Cost of goods sold Depreciation expense, equipment 14,000 394, 000 3,000 Insurance expense 2,500 Interest expense 1, 700 Interest payable Jen Conway, withdrawals Office supplies 250 14, 000 9,000 Prepaid insurance Prepaid rent 14,000 25,000 5,000 Rent expense Salaries payable 175,000 Sales discounts 2,80e 690, 250 Loss $ 73,110
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