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PA6-5 Preparing a Multistep Income Statement and Computing the Gross Profit Percentage [LO 6-5]

PA6-5 Preparing a Multistep Income Statement and Computing the Gross Profit Percentage [LO 6-5]

PA6-5 Preparing a Multistep Income Statement and Computing the Gross Profit Percentage [LO 6-5]

 

[The following information applies to the questions displayed below.]

 

Big Tommy Corporation is a local grocery store organized seven years ago as a corporation. The bookkeeper prepared the following statement at year-end (assume that all amounts are correct, but note the incorrect format):

 

BIG TOMMY CORPORATION
Profit and Loss
December 31
  Debit   Credit
Net Sales         $ 328,500  
Cost of Goods Sold $ 239,000          
Salaries and Wages Expense   48,000          
Office Expenses   8,500          
Travel Expenses   1,000          
Income Tax Expense   9,600          
Net Profit   22,400          
Totals $ 328,500     $ 328,500  
 

 

PA6-5 Part 1

Required:

  1. Prepare a properly formatted multistep income statement that would be used for external reporting purposes.
manish jayant 07-Sep-2020

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