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Chrome File Edit View History Bookmarks People Window Help Gross Profit Margin Defisition CHSHW x CQuestions 10-11 lof 22)> c x (- : ? eztomheducation.comhm.tpx PB6-4 Preparing a Multistep Income Statement with Sales Discounts and Sales Returns Profit Percentage [LO 6-5 (The following information applies to the questions displayed below. Emily\'s Greenhouse Corporation is a local greenhouse organized 10 years ago as a corporation. The bookkeeper prepared the following statement (assume that all amounts are correct, but note the incorrect terminology and format EMILY\'S GREENHOUSE CORPORATION Profit and Loss December 31 Credit $837000 Debit Sales Cost of Goods Sold Sales Returns and Allowances Sales Discounts Salaries and Wages Expense Office Expense Travel Expenses Income Tax Expense Net Prof $396,000 19,900 19,800 121,000 35,500 10,300 70,350 164,150 Totals $ 837000 $837000 References

Solution

Answer = Part 1) INCOME STATEMENT IN MULTIPLE STEP FORM Particulars Amount Sales Revenue $           8,37,000 Sales Returns and allowances $             -19,900 Sales Discounts $             -19,800 Net Revenue $           7,97,300 Cost of Goods Sold $         -3,96,000 Gross Profit $           4,01,300 Less : Operating Expenses Salaries and wages Expenses $           1,21,000 Office Exopenses $              35,500 Travel Expenses $              10,300 Net Income before Taxes $           2,34,500 Less : IncomeTaxes Expenses $              70,350 Net Profit $           1,64,150 Answer = Part 2) INCOME STATEMENT IN MULTIPLE STEP FORM Particulars Amount Net Revenue $           7,97,300 Cost of Goods Sold $         -3,96,000 Gross Profit $           4,01,300 Less : Operating Expenses Salaries and wages Expenses $           1,21,000 Office Exopenses $              35,500 Travel Expenses $              10,300 Net Income before Taxes $           2,34,500 Less : IncomeTaxes Expenses $              70,350 Net income $           1,64,150