The following data for the current year ended June 30 are from the accounting records of Zanadu Co.: Administrative expenses $28,750 Cost of merchandise sold 181,440 Interest expense 3,600 Rent revenue 1,500 Sales 534,440 Selling expenses 65,000   Prepare a multiple-step income statement for the year ended June 30. If an amount is a negative number, use a minus sign to indicate.

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is