Based on the above trial balance, prepare the multi-step income statement and calculate the following: DollarPlus Inc.Trial Balance31-Dec-21Account TitlesCashDr.Cr.25,230.00Accounts ReceivableMerchandise Inventory5,000.002,400.00Accounts PayableShare CapitalRetained Earning3,000.001,000.003,690.00Sales73,340.00Cost of gooda soldSalaries Expense30,000.004,000.00Interest IncomeInterast Expanse5,000.003,200.00Income Taxes5,200.00Rent ExpenseTelephone ExpenseTotala8,000.003,000.0086,030.00৪6,030.00Based on the above trial balance, prepare the multi-step income statement and calculate the following:Gross Profit Blank 1Net Income from operation Blank 2Net Income before income taxes Blank 3Net Income Blank 4

Preparation of Income Statement

Answered: Based on the above trial balance,…

Based on the above trial balance, prepare the r Gross Profit Blank 1 Net Income from operation Blank 2 Net Income before income taxes Blank 3 Net Income Blank 4

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Based on the above trial balance, prepare the multi-step income statement and calculate the following:

DollarPlus Inc.
Trial Balance
31-Dec-21
Account Titles
Cash
Dr.
Cr.
25,230.00
Accounts Receivable
Merchandise Inventory
5,000.00
2,400.00
Accounts Payable
Share Capital
Retained Earning
3,000.00
1,000.00
3,690.00
Sales
73,340.00
Cost of gooda sold
Salaries Expense
30,000.00
4,000.00
Interest Income
Interast Expanse
5,000.00
3,200.00
Income Taxes
5,200.00
Rent Expense
Telephone Expense
Totala
8,000.00
3,000.00
86,030.00
৪6,030.00
Based on the above trial balance, prepare the multi-step income statement and calculate the following:
Gross Profit Blank 1
Net Income from operation Blank 2
Net Income before income taxes Blank 3
Net Income Blank 4

Definition Definition Statement that shows the ending balance of all the ledger accounts of a firm at the end of the accounting period. The trial balance is prepared after all the entries have been posted to the ledger accounts and assists in preparing the final accounts of a firm.

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