Prepare a multiple step income statement based on the following account balances: Sales $1,300,000 Allowance for doubtful accounts 45,000 Bad debt expense 30,000 40,000 Beginning inventory Ending inventory 30,000 Depreciation expense Dividends declared Freight in Freight out Lottery winnings Prepaid insurance Purchases 20,000 18,000 Loss from discontinued operations 80,000 Loss from earthquake damage 22,000 Loss from sale of Available for Sale securities 7,000 Purchase returns Purchase discounts Rent expense Salary expense Sales returns Sales discounts 90,000 Income tax rate 25,000 20% 50,000 25,000 600,000 20,000 10,000 100,000 240,000 Unrealized loss from Available for Sale securities 42,000 Unrealized gain from Trading securities 25,000 Unearned rent revenue 15,000 20,000 8,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Prepare a multiple step income statement based on the following
account balances:
Sales
$1,300,000
Allowance for doubtful accounts 45,000
Bad debt expense
Beginning inventory
Ending inventory
Depreciation expense
Dividends declared
Freight in
Freight out
Prepaid insurance
Purchases
Purchase returns
Purchase discounts
Rent expense
Salary expense
Sales returns
Sales discounts
20,000
18,000
Loss from discontinued operations 80,000
Loss from earthquake damage 22,000
Loss from sale of Available for Sale securities 7,000
Lottery winnings
30,000
40,000
30,000
Income tax rate
90,000
20%
25,000
Unrealized loss from Available for Sale securities 42,000
Unrealized gain from Trading securities 25,000
Unearned rent revenue
15,000
50,000
25,000
600,000
20,000
10,000
100,000
240,000
20,000
8,000
Transcribed Image Text:Prepare a multiple step income statement based on the following account balances: Sales $1,300,000 Allowance for doubtful accounts 45,000 Bad debt expense Beginning inventory Ending inventory Depreciation expense Dividends declared Freight in Freight out Prepaid insurance Purchases Purchase returns Purchase discounts Rent expense Salary expense Sales returns Sales discounts 20,000 18,000 Loss from discontinued operations 80,000 Loss from earthquake damage 22,000 Loss from sale of Available for Sale securities 7,000 Lottery winnings 30,000 40,000 30,000 Income tax rate 90,000 20% 25,000 Unrealized loss from Available for Sale securities 42,000 Unrealized gain from Trading securities 25,000 Unearned rent revenue 15,000 50,000 25,000 600,000 20,000 10,000 100,000 240,000 20,000 8,000
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