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The adjusted trial balance of Big Papi Music Company at June 30, 2015, follows:.:.Requirements1. Prepare Big Papi’s multi-step income statement for the year ended June 30, 2015. 2. Journalize Big Papi’s closing entries. 3. Prepare a post-closing trial balance as of June 30, 2015.SOLUTION:Requirement 1BIG PAPI MUSIC COMPANYIncome StatementYear Ended June 30, 2015Sales Revenue$ 180,000
Less: Sales Returns and Allowances3,000Sales Discounts2,000Net Sales Revenue$ 175,000Cost of Goods Sold82,500Gross Profit92,500Operating Expenses:Selling Expenses19,200Administrative Expenses12,000Total Operating Expenses31,200Operating Income61,300Other Revenues and (Expenses):Interest Expense(1,600)Total Other Revenues and (Expenses)(1,600)Net Income$ 59,700Requirement 2DateAccounts and ExplanationDebitCreditJun. 30Sales Revenue