The following income statement was prepared by an office clerk hired for Juiy. Jou recognize that it is incorrect and prepare a corrected multi-step income statement. ting supervisc Demo Sales Income Statement For Month Ended July 31, 2020 $562,140 37,000 18,000 $617,140 Sales Accounts receivable Unearned sales. Net sales Operating expenses Accumulated depreciation, equipment. Advertising expense Cost of goods sold. Depreciation expense, equipment. $ 30,000 14,000 394,000 3,000 2,500 1,700 insurance expense Interest expense.. 250

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
Topic Video
Question
The following income statement was prepared by an office clerk hired for July. As the accounting supervisOor,
A &R Problem 5-1-perpetual
Sou recognize that it is incorrect and prepare a corrected multi-step income statement.
Demo Sales
Income Statement
For Month Ended July 31, 2020
$562,140
37,000
18,000
$617,140
Sales
Accounts recelvable
Unearned sales..
Net sales
$ 30,000
14,000
394,000
Operating expenses:
Accumulated depreciation, equipment.
Advertising expense.
Coat of goods sold
Depreciation expense, equipment.
insurance expense.
3,000
2,500
1,700
250
14,000
Interest expense.
Interest payable..
Jen Conway, withdrawals
Office supplies.
Prepaid insurance.
Prepaid rent.
Rent expense..
Salaries payable
9,000
14,000
25,000
5,000
175,000
2,800
690,250
Sales discounts.
Loss.
$ 73.110
Transcribed Image Text:The following income statement was prepared by an office clerk hired for July. As the accounting supervisOor, A &R Problem 5-1-perpetual Sou recognize that it is incorrect and prepare a corrected multi-step income statement. Demo Sales Income Statement For Month Ended July 31, 2020 $562,140 37,000 18,000 $617,140 Sales Accounts recelvable Unearned sales.. Net sales $ 30,000 14,000 394,000 Operating expenses: Accumulated depreciation, equipment. Advertising expense. Coat of goods sold Depreciation expense, equipment. insurance expense. 3,000 2,500 1,700 250 14,000 Interest expense. Interest payable.. Jen Conway, withdrawals Office supplies. Prepaid insurance. Prepaid rent. Rent expense.. Salaries payable 9,000 14,000 25,000 5,000 175,000 2,800 690,250 Sales discounts. Loss. $ 73.110
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Financial Statements
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
  • SEE MORE QUESTIONS
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