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30 August, 12:32

Multiple-Step Income Statement:

Curbstone Company

Income Statement

For the Year Ended August 31, 2019

Sales $8,595,000

Cost of merchandise sold 6,110,000

Income from operations $2,485,000

Expenses:

Selling expenses $800,000

Administrative expenses 575,000

Delivery expense 425,000

Total expenses 1,800,000

$685,000

Other expense:

Interest revenue 45,000

Gross profit $640,000

Required:

1. The income statement above contains errors. Prepare a corrected multi-step income statement.

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Answers (1)
  1. 30 August, 12:44
    0
    The preparation of the corrected multi-step income statement is presented below:

    Curbstone Company

    Income Statement

    For the Year Ended August 31, 2019

    Particulars Amount

    Net sales $8,595,000.00

    Less: Cost of goods sold - $6,110,000.00

    Gross profit $2,485,000.00

    Operating expenses

    Less: Selling expenses - $800,000.00

    Less: Administrative expenses - $575,000.00

    Less: Delivery expenses - $425,000.00

    Total expenses - $1,800,000.00

    Operations income $685,000.00

    Non operating income

    Interest revenue $45,000.00

    Net income $730,000.00
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