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 CORPORATIONProfit and LossDecember 31 Debit CreditNet 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. EMILY'S GREENHOUSE CORPORATIONIncome StatementFor the Year Ended December 31Net SalesCost of Goods SoldGross Profit522,220323,000199,220ExpensesSalaries and Wages ExpenseOffice ExpensesTravel ExpenseInterest ExpenseIncome from OperationsIncome Tax ExpenseNet Income

Income statement: It is a financial statement prepared by a company that reports revenues and…

Answered: Prepare a properly formatted multistep…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

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
Profit and Loss
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.

EMILY'S GREENHOUSE CORPORATION
Income Statement
For the Year Ended December 31
Net Sales
Cost of Goods Sold
Gross Profit
522,220
323,000
199,220
Expenses
Salaries and Wages Expense
Office Expenses
Travel Expense
Interest Expense
Income from Operations
Income Tax Expense
Net Income

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions