Ennio Morricone Company had the following normal account balances on selected accounts:   Sales Revenue                                                     $2,400,000 Advertising Expense                                                   55,000 Sales Returns and Allowances                                 41,000 Cost of Goods Sold                                                1,085,000 Common stock                                                         250,000 Dividends                                                                 150,000 Freight-Out                                                                 25,000 Income tax expense                                                   20,000 Interest Expense                                                         70,000 Salaries and Wages Expense                                  675,000 Utilities Expense                                                          17,000 Depreciation Expense                                               125,000 Interest Revenue                                                        30,000 Inventory                                                                     67,000 Retained earnings                                                     535,000 Insurance Expense                                                     15,000 Sales Discounts                                                           8,500   Instructions 1.   Use the above information to prepare a multiple-step income statement for the year ended December 31, 2022.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Ennio Morricone Company had the following normal account balances on selected accounts:

 

Sales Revenue                                                     $2,400,000

Advertising Expense                                                   55,000

Sales Returns and Allowances                                 41,000

Cost of Goods Sold                                                1,085,000

Common stock                                                         250,000

Dividends                                                                 150,000

Freight-Out                                                                 25,000

Income tax expense                                                   20,000

Interest Expense                                                         70,000

Salaries and Wages Expense                                  675,000

Utilities Expense                                                          17,000

Depreciation Expense                                               125,000

Interest Revenue                                                        30,000

Inventory                                                                     67,000

Retained earnings                                                     535,000

Insurance Expense                                                     15,000

Sales Discounts                                                           8,500

 

Instructions

1.   Use the above information to prepare a multiple-step income statement for the year ended December 31, 2022.

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