The adjusted trial balance for the year ended December 31

The adjusted trial balance for the year ended December 31 -...

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The adjusted trial balance for the year ended December 31, 2010, for Dykstra Company is shown below. DYKSTRA COMPANY Adjusted Trial Balance For the Year Ended December 31, 2010 Dr. $ 14,500 Accounts Receivable 11,100 Merchandise Inventory 29,000 Prepaid Insurance 2,500 Store Equipment 95,000 Accumulated Depreciation Notes Payable Accounts Payable Common Stock Retained Earnings Dividends 12,000 Sales Returns and Allowances 6,700 Sales Discounts 5,000 Cost of Goods Sold 363,400 Freight-out 7,600 Advertising Expense 12,000 Store Salaries Expense 56,000 Utilities Expense 18,000 Rent Expense 24,000 Depreciation Expense 9,000 Insurance Expense 4,500 Interest Expense 3,600 Interest Revenue $673,900
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Instructions Prepare a multiple-step income statement for Dykstra Company. Assume a tax rate of 30 percent. Solution to Comprehensive Action Plan In preparing the income statement, remember that the key components are net sales, cost of goods sold, gross profit, total operating expenses, and net income (loss).
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Unformatted text preview: These components are reported in the right-hand column of the income statement. Present nonoperating items after income from operations. DYKSTRA COMPANY Income Statement For the Year Ended December 31, 2010 Sales revenues Sales $536,800 Less: Sales returns and allowances $ 6,700 Sales discounts 5,000 11,700 Net sales 525,100 Cost of goods sold 363,400 Gross profit 161,700 Operating expenses DYKSTRA COMPANY Income Statement For the Year Ended December 31, 2010 Store salaries expense 56,000 Rent expense 24,000 Utilities expense 18,000 Advertising expense 12,000 Depreciation expense 9,000 Freight-out 7,600 Insurance expense 4,500 Total operating expenses 131,100 Income from operations 30,600 Other revenues and gains Interest revenue 2,500 Other expenses and losses Interest expense 3,600 1,100 Income before income taxes 29,500 Income tax expense 8,850 Net income $ 20,650...
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The adjusted trial balance for the year ended December 31 -...

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