The year-to-date income statement of MALLOWS, Inc. is presented below: MALLOWS, Inc. Income Statement For the six-month period ended June 30, 2021 Sales P 2,400,000 1,780,000) 620,000 90,000 710,000 Cost of sales (. Gross profit Interest income Total income Selling and distribution expenses General and administrative expenses P 230,000 150,000 380,000) 330,000 75,000) 255,000 76,500) 178,500 Net income before interest and tax Finance costs Net income before tax Income tax expense Net income after tax P

The year-to-date income statement of MALLOWS, Inc. is presented below: MALLOWS, Inc. Income Statement For the six-month period ended June 30, 2021 Sales P 2,400,000 1,780,000) 620,000 90,000 710,000 Cost of sales (. Gross profit Interest income Total income Selling and distribution expenses General and administrative expenses P 230,000 150,000 380,000) 330,000 75,000) 255,000 76,500) 178,500 Net income before interest and tax Finance costs Net income before tax Income tax expense Net income after tax P

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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Question

TOPIC: INTERIM FINANCIAL REPORTING

Preparation of Interim Income Statement
- Prepare an income statement for the second quarter ended June 30, 2021

The year-to-date income statement of MALLOWS, Inc. is presented below:
MALLOWS, Inc.
Income Statement
For the six-month period ended June 30, 2021
2,400,000
1,780,000)
620,000
Sales
P
Cost of sales
(,
Gross profit
Interest income
90,000
710,000
Total income
Selling and distribution expenses
General and administrative expenses
230,000
150,000
380,000)
330,000
75,000)
255,000
76,500)
178,500
Net income before interest and tax
Finance costs
Net income before tax
Income tax expense
Net income after tax

Also, the income statement for the first three months of the year are also provided below:
MALLOWS, Inc.
Income Statement
For the three-month period ended March 31, 2021
1,100,000
880,000)
220,000
50,000
270,000
Sales
Cost of sales
Gross profit
Interest income
Total income
Selling and distribution expenses
General and administrative expenses
P
90,000
80,000
170,000)
100,000
45,000)
55,000
16,500)
38,500
Net income before interest and tax
Finance costs
Net income before tax
Income tax expense
Net income after tax
Required: Prepare an income statement for the second quarter ended June 30, 2021.

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