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Although the single - 575,400 Operating Expenses Selling...

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Although the single-step format is easier to read than the multiple-step format, most companies  produce a multiple-step income statement, which clearly identifies each step in the calculation of net  income or net loss. Music World Income Statement For the Year Ended June 30,20X3 Sales $1,240,000 Less: Sates Returns and Allowances $65,000 Sales Discounts 3,000 68,000 Net Sates 1,172,000 Cost of Goods Sold Inventory, July 1,20X2 37,000 Purchases $610,000 Less: Purchases Returns and Allowances $9,000 Purchases Discounts 8,000 17,000 Net Purchases 593,000 Add: Freight-In 5,600 Cost of Goods Purchased 598,600 Cost of Goods Available for Sate 635,600
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Less: Inventory, June 30,20X3 39,000 Cost of Goods Sold 596,600 Gross Profit
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Unformatted text preview: 575,400 Operating Expenses Selling Expenses Sales Salaries Expense 120,000 Sales Commission Expense 21,000 Delivery Expense 15,000 Store Rent Expense 12,000 Depredation Expense-Store Equipment 9,000 Total Selling Expenses 177,000 General and Administrative Expenses Office Salaries Expense 140,000 Insurance Expense 6,000 Depredation Expense-Office Equipment 5,000 Office Rent Expense 1,200 Office Supplies Expense 700 Total General and Administrative Expenses 152,900 Total Operating Expenses 329,900 Operating Income 245,500 Other Income/(Expense), Net Interest Income 7,500 Gain on Sate of Equipment 1,500 Interest Expense (18,000) Other Income/(Expense), Net (9,000) Net Income $236,500...
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