Psymon Company, Incorporated, sells construction equipment. The annual fiscal period ends on December 31. following adjusted trial balance was created from the general ledger accounts on December 31: Credits Account Titles Cash Accounts Receivable Inventory Property and Equipment Accumulated Depreciation Accounts Payable Common Stock Retained Earnings, January 1 Sales Revenue Debits $ 50,440 21,200 77,000 58,000 $ 24,400 35,600 106,000 13,200 299 609

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question

Gadubhai 

Psymon Company, Incorporated, sells construction equipment. The annual fiscal period ends on December 31. The
following adjusted trial balance was created from the general ledger accounts on December 31:
Account Titles
Cash
Accounts Receivable
Inventory
Property and Equipment
Accumulated Depreciation
Accounts Payable
Common Stock
Retained Earnings, January 1
Sales Revenue
Cost of Goods Sold
Salaries and Wages Expense
Office Expense
Interest Expense
Income Tax Expense
Totals
Debits
$ 50,440
21, 200
77,000
58,000
PSYMON COMPANY, INCORPORATED
Income Statement
117, 200
20,200
21, 200
2,800
11,760
$ 379,800
Credits
$ 24,400
35,600
106,000
13, 200
200, 600
$ 379,800
Required:
1. Prepare a multistep income statement that would be used for external reporting purposes. TIP: Some of the accounts listed will
appear on the balance sheet rather than the income statement.
Transcribed Image Text:Psymon Company, Incorporated, sells construction equipment. The annual fiscal period ends on December 31. The following adjusted trial balance was created from the general ledger accounts on December 31: Account Titles Cash Accounts Receivable Inventory Property and Equipment Accumulated Depreciation Accounts Payable Common Stock Retained Earnings, January 1 Sales Revenue Cost of Goods Sold Salaries and Wages Expense Office Expense Interest Expense Income Tax Expense Totals Debits $ 50,440 21, 200 77,000 58,000 PSYMON COMPANY, INCORPORATED Income Statement 117, 200 20,200 21, 200 2,800 11,760 $ 379,800 Credits $ 24,400 35,600 106,000 13, 200 200, 600 $ 379,800 Required: 1. Prepare a multistep income statement that would be used for external reporting purposes. TIP: Some of the accounts listed will appear on the balance sheet rather than the income statement.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Completing the Accounting Cycle
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.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education