Ex. 203
Instructions
State the missing items identified by ?.
1. Gross profit – Operating expenses = ?
2. Cost of goods sold + Gross profit on sales = ?
3. Sales – (? + ?) = Net sales
4. Income from operations + ? – ? = Net income
5. Net sales – Cost of goods sold = ?
Ex. 204
The adjusted trial balance of Kasten Company contained the following information:
Debit Credit
Sales$660,000
Sales Returns and Allowances$ 20,000
Sales Discounts7,000
Cost of Goods Sold436,000
Freight-out2,000
Advertising Expense15,000
Interest Expense18,000
Store Salaries Expense55,000
Utilities Expense28,000
Depreciation Expense7,000
Interest Revenue30,000
Instructions
1.Use the above information to prepare a multiple-step income statement for the year ended December 31, 2011.
2.Prepare a single-step income statement for the year ended December 31, 2011.