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Multiple-Step Income Statement:
Curbstone Company
Income Statement
For the Year Ended August 31, 2019
Sales $8,595,000
Cost of merchandise sold 6,110,000
Income from operations $2,485,000
Expenses:
Selling expenses $800,000
Administrative expenses 575,000
Delivery expense 425,000
Total expenses 1,800,000
$685,000
Other expense:
Interest revenue 45,000
Gross profit $640,000
Required:
1. The income statement above contains errors. Prepare a corrected multi-step income statement.

Respuesta :

Explanation:

The preparation of the  corrected multi-step income statement is presented below:

                                        Curbstone Company

                                        Income Statement

                          For the Year Ended August 31, 2019

Particulars                                Amount

Net sales                                 $8,595,000.00  

Less: Cost of goods sold       -$6,110,000.00  

Gross profit                              $2,485,000.00

Operating expenses  

Less: Selling expenses              -$800,000.00  

Less: Administrative expenses  -$575,000.00  

Less: Delivery expenses             -$425,000.00      

Total expenses                            -$1,800,000.00

Operations income                       $685,000.00

Non operating income  

Interest revenue                           $45,000.00

Net income                                  $730,000.00

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