The records of Quality Cut Steak Company list the following selected accounts for the year ended April 30, 2020 after all adjusting entries have been recorded. Prepare a multiple-step income statement in good form for the company. (Please note only selected accounts are listed, do not try to balance the excerpted trial balance). Interest revenue 500 Accounts Payable 16,900
Inventory 45,300 Accounts Receivable 38,000
Notes Payable,
Long-term 52,000 Accumulated Depreciation
- Equipment 36,800
Salaries Payable 2,400 Arnold, Capital 42,200
Sales Revenue 292,000 Arnold, Withdrawals 17,000
Salaries Expense
(Selling) 21,400 Cash 7,400
Office Supplies 6,300 Cost of Merchandise
Sold 160,600
Unearned Rent 13,200 Equipment 130,000
Interest Expense 1,700 Interest Payable 1,000
Depreciation Expense
- Equipment (Admin) 1,300 Rent Expense (Admin) 9,600
Utilities Expense
(Admin) 4,300 Utilities Expense
(Selling) 10,600
Delivery Expense
(Selling) 3,500

Quality Cut Steak Company

Quality Cut Steak Company

Multiple-step Income Statement for the year ended April 30, 2020

Sales Revenue                                  $292,000

Cost of Merchandise  Sold                  (160,600)

Gross profit                                         $131,400

Operating expenses:

Depreciation Expense -

 Equipment (Admin)             1,300

Rent Expense (Admin)         9,600

Utilities Expense  (Admin)    4,300

Salaries Expense  (Selling) 21,400

Utilities Expense  (Selling) 10,600

Delivery Expense  (Selling) 3,500

Total operating expenses                $50,700

Net operating income                      $80,700

Interest revenue                                      500  

Interest Expense                                  (1,700)

Net income before taxes                $79,500

Explanation:

a) Data and Calculations:

Accounts Payable 16,900

Cash 7,400

Accounts Receivable 38,000

Office Supplies 6,300  

Inventory 45,300

Equipment 130,000

Salaries Payable 2,400  

Unearned Rent 13,200

Interest Payable 1,000

Accumulated Depreciation - Equipment 36,800

Notes Payable,  Long-term 52,000

Arnold, Capital 42,200

Arnold, Withdrawals 17,000

Sales Revenue 292,000

Interest revenue 500

Cost of Merchandise  Sold 160,600

Interest Expense 1,700

Depreciation Expense - Equipment (Admin) 1,300

Rent Expense (Admin) 9,600

Utilities Expense  (Admin) 4,300

Salaries Expense  (Selling) 21,400

Utilities Expense  (Selling) 10,600

Delivery Expense  (Selling) 3,500

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