The following information applies to the questions displayed

[The following information applies to the questions displayed below.]

Psymon Company, Inc. sells construction equipment. The annual fiscal period ends on December 31. The following adjusted trial balance was created from the general ledger accounts on December 31: Account Titles Debits Credits Cash $ 61,970 Accounts Receivable 25,600 Inventory 93,500 Property and Equipment 69,000 Accumulated Depreciation $ 29,000 Liabilities 43,300 Common Stock 128,000 Retained Earnings, January 1 15,400 Sales Revenue 267,500 Sales Returns and Allowances 8,900 Sales Discounts 11,800 Cost of Goods Sold 143,600 Salaries and Wages Expense 24,600 Office Expense 25,600 Interest Expenses 3,900 Income Tax Expense 14,730

Totals $ 483,200 $ 483,200

9.value: 2.00 pointsRequired information 2. Prepare a multistep income statement that would be used for external reporting purposes, beginning with the amount for Net Sales.

Solution

Preparation Of Multistatement Account Amount ($) Amount ($) Net Sales= Net Sales 246300 Sales 267500 Less:Cost of Goods Sold 143600 Sales Returns -8900 Gross Profit 102700 Sale Discount -11800 Less:Operating Expenses 246300 Salaries and Wages 24600 Office Expenses 25600 Income from operations 52500 Less:Other Expenses Interest Charges 3900 Income before Income taxes 48600 Less:Income Tax Expenses 14730 Net Income 33870