The following income statement contains errors. Curbstone Company Income Statement For the Year Ended August 31, 20Y5 1 Sales $8,595,000.00 2 Cost of merchandise sold 6,110,000.00 3 Income from operations $2,485,000.00 4 Expenses: 5 Selling expenses $800,000.00 6 Administrative expenses 575,000.00 7 Delivery expense 425,000.00 8 Total expenses 1,800,000.00 9 $685,000.00 10 Other expense: 11 Interest revenue 45,000.00 12 Gross profit $640,000.00 Identify the errors by preparing a corrected multiple-step income statement. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. A colon (:) will automatically appear if it is required. X Income Statement Identify the errors by preparing a corrected multiple-step income statement. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. A colon (:) will automatically appear if it is required. Curbstone Company Income Statement 1 2 3

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following income statement contains errors.

Curbstone Company

Income Statement

For the Year Ended August 31, 20Y5

1	Sales		$8,595,000.00
2	Cost of merchandise sold		6,110,000.00
3	Income from operations		$2,485,000.00
4	Expenses:
5	Selling expenses	$800,000.00
6	Administrative expenses	575,000.00
7	Delivery expense	425,000.00
8	Total expenses		1,800,000.00
9			$685,000.00
10	Other expense:
11	Interest revenue		45,000.00
12	Gross profit		$640,000.00

Identify the errors by preparing a corrected multiple-step income statement. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. A colon (:) will automatically appear if it is required.

Income Statement

Curbstone Company

Income Statement

1
2
3

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