Problem 89A a Prepare a multiplestep income statement Proble

Problem 8-9A

(a)

Prepare a multiple-step income statement.

Problem 8-9A The adjusted trial balance of Crane Company for the year ended December 31, 2019, is as follows: Debit Credit Cash $6,000 Accounts Receivable 3,100 Notes Receivable 6,500 Inventory 9,800 Equipment 7,100 Allowance for Doubtful Accounts $300 Accumulated Depreciation—Equipment 1,500 Notes Payable 1,300 Accounts Payable 700 Common Stock 17,300 Retained Earnings 11,400 Dividends 1,400 Sales Revenue 11,690 Interest Revenue 200 Cost of Goods Sold 7,900 Salary and Wages Expense 1,900 Rent Expense 600 Bad Debt Expense 60 Service Charge Expense 30 $44,390 $44,390

Solution

MULTIPLE-STEP INCOME STATEMENT.

CRANE COMPANY

Income Statement

For the year ended December 31, 2019

Particulars

Amount ($)

Amount ($)

Sales revenue       

11,690

Less: Cost of goods sold

(7,900)

Gross Profit

3,790

Operating Expenses

Salary and Wages Expense      

1,900

Rent Expense       

600

Bad Debt Expenses

60

Total Operating Expenses

(2,560)

Total Operating Income

1,230

Other Income / (Expenses)

Interest Revenue

200

Service Charge Expense

(30)

Total Other Income, Net

170

Net Income

1,400

CRANE COMPANY
Income Statement
For the year ended December 31, 2019
Particulars	Amount ($)	Amount ($)
Sales revenue		11,690
Less: Cost of goods sold		(7,900)
Gross Profit		3,790
Operating Expenses
Salary and Wages Expense	1,900
Rent Expense	600
Bad Debt Expenses	60
Total Operating Expenses		(2,560)
Total Operating Income		1,230
Other Income / (Expenses)
Interest Revenue	200
Service Charge Expense	(30)
Total Other Income, Net		170
Net Income		1,400