Prepare a properly formatted multistep income statement that would be used for external reporting purposes.
Prepare a properly formatted multistep income statement that would be used for external reporting purposes.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter2: Financial Statements And The Annual Report
Section: Chapter Questions
Problem 2.13MCE
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Question
Emily’s Greenhouse Corporation is a local greenhouse organized 10 years ago as a corporation. The bookkeeper prepared the following statement at year-end (assume that all amounts are correct, but note the incorrect format):
EMILY’S GREENHOUSE CORPORATION | |||||||
December 31 | |||||||
Debit | Credit | ||||||
Net Sales | $ | 522,200 | |||||
Cost of Goods Sold | $ | 323,000 | |||||
Salaries and Wages Expense | 69,000 | ||||||
Office Expenses | 16,000 | ||||||
Travel Expenses | 4,000 | ||||||
Income Tax Expense | 33,060 | ||||||
Net Profit | 77,140 | ||||||
Totals | $ | 522,200 | $ | 522,200 | |||
- Prepare a properly formatted multistep income statement that would be used for external reporting purposes.
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