SINGLE STEP

pg. 63

Abegail Company
Income Statement
December 31, 2017
Note
Net Sales 2,835,800.00
Other Income 98,000.00

Total Income 2,933,800.00

Less: Expenses
Decrease in Inventory 60,000.00
Net Purchases 1,122,000.00
Utilities expense 120,500.00
Freight-out 22,000.00
Depreciation expense 181,100.00
Other expense 80,000.00
Finance Cost 92,600.00
1,678,200.00
Profit 1,255,600.00

Accumulated depreciation-building d ko sure kung san ilalagay kaya

wala sa notes
Note 1 Net Sales

Sales 2,867,800.00
Less: Sales return and allowances 12,000.00
Sales Discount 20,000.00 32,000.00
Net Sales 2,835,800.00

Note 2 Other Income

Dividend Income 30,000.00
Unearned Income 50,000.00
Interest Income 8,000.00
Accrued Income 10,000.00
Total 98,000.00

Note 3 Derease in Merchandise Inventory

Merchandise Inventory,1/1/2017 205,000.00
Merchandise Inventory,12/31/2017 145,000.00
Decrease in Merchandising Inventory 60,000.00

Note 4 Net Purchases

Purchases 1,132,000.00
Freight-in 23,000.00
Total 1,155,000.00
Less: Purchase Discount 18,000.00
Purchase Return & Allowances 15,000.00 33,000.00
Net Cost Purchases/Net Purchase 1,122,000.00

Note 5 Utilities Expense

Utilities expense- selling 35,000.00

Utilities expense-general 26,000.00
Insurance expense-selling 40,000.00
Insurance expense-general 19,500.00
Total 120,500.00

Note 6 Depreciation Expense

Depreciation expense-store-equipment 65,500.00
Depreciation expense-office equipment 35,600.00
Depreciation expense-building 80,000.00
181,100.00

Note 7 Other expense

Loss due to earthquake 30,000.00
Loss due to flood 50,000.00
Total 80,000.00
Note 8 Finance Cost
Interest on loans (expense) 28,900.00
Interest on notes receivables 45,000.00
Bank service charges 18,700.00
Total 92,600.00
MULTIPLE-STEP
Francis's multiple-step income statement for 2017

Net sales 278,000.00

Other income 8,000.00
Total Income 286,000.00
Less: Cost of Goods Sold 60,000.00
Gross Profit 226,000.00
Less: Operating Expense
Selling Expense 52,000.00
Administrative Expense 35,000.00 87,000.00
Operating Income 139,000.00
Less: Other Expense 23,000.00
Finance Cost 1,000.00 24,000.00
Profit before taxes 115,000.00
Income taxes (30%) 34,500.00
Less:Income Taxes 80,500.00
Note 1 Cost of Goods Sold

Merchandise inventory, 1/01/2017 25,000.00

Purchases 60,000.00
Less: Purchases Discounts 5,000.00
Net Cost Purchases/Net Purchases 55,000.00
Total Goods Available for Sale 80,000.00
Less: Merchandise Inventory, 12/31/2017 20,000.00
Cost of Goods Sold 60,000.00

Note 2 Net Sales

Sales 280,000.00
Less: Sales Return 2,000.00
Net Sales 278,000.00

Note 3 Selling Expense

Selling Expense 50,000.00

Freight-out 2,000.00
Total 52,000.00

Administrative expense 35,000.00

Note 4 Other Expense

Loss on sale of equipment 7,000.00
Loss on due fire 16,000.00
Total 23,000.00

Note 5 Finance Cost

Interest expense 1,000.00

Total 1,000.00