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Financial Accounting : Income Statement

Using whatever data you believe appropriate, prepare a multiple-step income statement for the Pratt Department Store for the year ended December 31, 2000.

Multiple-Step Income Statement

Below is a partial listing of the adjusted account balances of the Pratt Department Store at year-end on December 31, 2000.

Accounts Receivable $ 19,000
Cost of Goods Sold 270,000
Selling Expenses (includes depreciation) 35,000
Interest Expense 1,000
Accumulated Depreciation-Building 10,000
Sales Discounts 22,000
Merchandise Inventory 45,000
Administrative Expenses (includes depreciation) 18,000
Sales 350,000
Accounts Payable 14,000
Interest Revenue 800

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Solution Preview

The general structure of Multiple-Step Income Statement
+ Cash sales
+ Credit sales
= Total Sales
- sales returns & allowances
- sales ...

Solution Summary

An income statement is created. The solution is detailed and well presented.