Exercise 254 Part Level Submission Presented below is inform

Exercise 254 (Part Level Submission) Presented below is information for Zhan Company for the month of January 2017 Cost of goods sold Freight-out Insurance expense Salaries and wages expense 42,000 Sales revenue $35,000 8,000 Sales returns and allowances 13,000 421,000 $280,000 Rent expense 7,000 Sales discounts 12,000 Your answer is partially correct. Try again. Prepare a multiple-step income statement. ZHAN COMPANY Income Statement For the Month Ended January 31, 2017 Sales Sales Revenue 421,000 Less ? Sales Returns and Allowances 13,000 Sales Discounts 8000

Solution

Income statement :

Sales
Sales revenue		421000
Less:
Sales return and allowance	13000
Sales discount	8000
		21000
Net Sales		400000
Less; Cost of goods sold		280000
Gross profit		120000
Less: Operating expense
Salary and wages expense	42000
Freight out	7000
Rent expense	35000
Inurance expense	12000
Total operating expense		96000
Operating income		24000