1) ZZZ Company sells beds and linens. There are 10,000 shares of capital stock outstanding. The annual fiscal period

1) ZZZ Company sells beds and linens. There are 10,000 shares of capital stock outstanding. The annual fiscal period

1) ZZZ Company sells beds and linens. There are 10,000 shares of capital stock outstanding. The annual fiscal period ends on December 31. The following condensed trial balance was taken from the general ledger on December 31, 2010:Debit CreditCash $ 42,000Accounts receivable 18,000 Inventory 65,000Operational assets 50,000Accumulated depreciation $ 21,000Liabilities 30,000Common stock 90,000Retained earnings, January 1, 2009 11,600Sales revenue 182,000Sales returns and allowances 7,000Cost of goods sold 98,000Selling expense 17,000Administrative expense 18,000Interest expense 2,000Extraordinary loss 8,000Income tax expense (30% tax rate) 9,600 Totals $334,600 $334,600Required: Prepare a multiple-step income statement. Hint: the extraordinary item needs to be shown below the income from operations and shown net of taxes. You will have to search outside of your textbook to find an example.


Comments are closed.