Question

Caitiyn Communications reported the following figures from its adjusted trial balance for its first year of business, which ended on July 31 (click the icon to view the accounts and balances.) Prepare Caitlyn Communications's multi-step income statement for the year ended July 31, 2018.

Answer 1

Given statement:

Cash $3300 Cost of goods sold 18,200

Selling expense 2000 Equipment 11,500

Account payable 4200 Accrued liabilities 1,800

common stock 6255 Net sales revenue 28,800

Notes payable , long term 400 Accounts receivable 2,900

Merchandise inventory 700 Interest Expense 55

Administrative Inventory 2600

Solution:

Caitiyn Communications Income statement (multi-step) For the year ended July 31, 2018:

Net sales revenue 28,800

Cost of goods sold 18,200

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Gross profits 10,600

Operating Expense:

Selling expense 2000

Administrative expense 2600

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Total Operating Expense 4,600

Income from operations 6,000

Other Revenue and expenses

Interest Expense 55

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Total Other Revenue and expenses 55

Net Income 5,945