Scribd Logo
Upload

Welcome to Scribd!

  • Multistep Income Statement

    Uploaded by

    Sonia
    14 views2 pages
    The document outlines a multistep income statement that tracks a company's net sales, cost of goods sold, gross margin, operating expenses, other revenues and expenses, income before taxes, income taxes expense, and net income. It lists the accounts that make up each section, including sales, purchases, inventory, various expenses, revenues, gains/losses, and income/expense accounts. The income statement follows the standard calculation of net income by subtracting expenses from revenues at each step.

    Original Description:

    Original Title

    MULTISTEP INCOME STATEMENT

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document outlines a multistep income statement that tracks a company's net sales, cost of goods sold, gross margin, operating expenses, other revenues and expenses, income before taxes, income taxes expense, and net income. It lists the accounts that make up each section, including sales, purchases, inventory, various expenses, revenues, gains/losses, and income/expense accounts. The income statement follows the standard calculation of net income by subtracting expenses from revenues at each step.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    14 views2 pages

    Multistep Income Statement

    Uploaded by

    Sonia
    The document outlines a multistep income statement that tracks a company's net sales, cost of goods sold, gross margin, operating expenses, other revenues and expenses, income before taxes, income taxes expense, and net income. It lists the accounts that make up each section, including sales, purchases, inventory, various expenses, revenues, gains/losses, and income/expense accounts. The income statement follows the standard calculation of net income by subtracting expenses from revenues at each step.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    MULTISTEP

    INCOME STATEMENT
    NET SALES

    Sales (decrease debit) (increase credit)

    Sales discounts (se resta) (increase debit) (decrease credit)

    Sales returns (se resta) (increase debit) (decrease credit)

    Net sales

    COST OF GOODS SOLD

    Merchandise inventory at the beginning

    Purchases (increase debit) (decrease credit)

    Purchase returns (se resta) (decrease debit) (increase credit)

    Purchases discounts (se resta) (decrease debit) (increase credit)

    Purchase discounts lost (increase debit) (decrease credit)

    Freight-In (increase debit) (decrease credit)

    Freight-Out (increase debit) (decrease credit)

    Net cost of purchases

    Goods available for sale

    Merchandise inventory at the end

    GROSS MARGIN

    Net sales - Cost of goods sold

    OPERATING EXPENSES

    Selling expenses

    Advertising expense (increase debit) (decrease credit)

    Supplies expense (increase debit) (decrease credit)

    General and administrative expenses

    Amortization expense (increase debit (decrease credit)

    Depreciation expense (increase debit) (decrease credit)

    Insurance expense (increase debit) (decrease credit)

    Rent expense (increase debit) (decrease credit)

    Repair expense (increase debit) (decrease credit)

    Salaries expense (increase debit) (decrease credit)

    Service charge (increase debit) (decrease credit)


    Uncollectible accounts expense (increase debit) (decrease credit)

    Utilities expense (increase debit) (decrease credit)

    Warranty expense (increase debit) (decrease credit)

    OTHER REVENUES AND EXPENSES

    Dividend income (decrease debit) (increase credit)

    Interest income (decrease debit) (increase credit)

    Investment income (decrease debit) (increase credit)

    Service revenue (decrease debit) (increase credit)

    Gain on sale of investments

    Loss on disposal of equipment

    Interest expense (increase debit) (decrease credit) (se resta)

    Total other revenue and expenses

    INCOME BEFORE INCOME TAXES

    Revenue – Expenses (Gross margin – Total operating expenses)

    INCOME TAXES EXPENSE

    NET INCOME

    Income before income taxes – Income taxes expense

    You might also like