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    Financial Accounting : Income Statement

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    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.