Chapter 5, Problem P5.48CT

Using Excel to prepare a multi-step income statement.

Download an Excel template for this problem online in My Accounting Lab or at htt://www.pearsonhighered.com/Horngren.
Cougar Mountain Sports has prepared an adjusted trial balance for the fiscal year ended June 30, 2018.

Notes to the adjusted trial balance are located below the totals.

Use the blue shaded areas on the income statement worksheet for inputs.

Requirements:

1. Use Excel to prepare a multi-step income statement based on the adjusted trial balance.
1. Use formulas to link the balances on the adjusted trial balance to the amounts on the income statement. Note that some balances are split between two different areas of the Income Statement. For example. The Rent Expense is divided into two categories-Selling and administrative.
2. Use a formula to add and subtract account amounts as indicated.
3. Format the numbers in the dollar columns with a comma and no decimal places (e.g.5, 460) Use a dollar sign at the top of each column and at the total (e.g. $ 26,201). Make sure the decimal places align.
4. Double-underline the total.
2. Compute the gross profit margin percentage. Format percentages to two decimal places (e.g. 22.74%).