Business
Engineering
Math
Science
Social Science
Accounting (Text Only)
Solutions
Accounting (Text Only)
Multiple-step income statement
Identify the errors in the following income statement:
Multi step income statement: A multiple step income statement refers to the income statement that shows the operating and non-operating activities of the business under separate head. In different steps of the multi-step income statement, principal operating activities are reported that starts from the record of sales revenue with all contra sales revenue account like sales returns, allowances and sales discounts.
To Identify: The errors in the income statement of Company C.
- The deduction of cost of goods sold from the sales revenue results gross profit rather income from operations.
- The deduction of total expenses from the gross profit results income from operations rather operating income.
- The interest revenue should come under the head of ‘other revenue’ and added to income from operations which results net income.
- The final amount is titled as net income not gross profit on the income statement.
Prepare the correct multi-step income statement of Company C.
| Company C | ||
| Income Statement | ||
| Year Ended August 31, 2016 | ||
| Particulars | Amount ($) | Amount ($) |
| Sales Revenue | ... | |
Chapter 6 Solutions
Additional Business Solutions
Find more solutions based on key concepts
Show solutions addVariable and Fixed Costs, Cost Formula, High-Low Method Li Ming Yuan and Tiffany Shaden are the department head...
Managerial Accounting: The Cornerstone of Business Decision-Making
TOTAL COST OF EMPLOYEE B. F. Goodson employs Eduardo Gonzales at a salary of 46,000 a year. Goodson is subject ...
College Accounting, Chapters 1-27
Multiple production department factory overhead rates The management of Spotted Cow Dairy Company, described in...
Financial & Managerial Accounting
The following were selected from among the transactions completed during the current year by Danix Co., an appl...
Financial Accounting
Treasury stock transactions Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current yea...
Financial And Managerial Accounting
WaterWorld Inc. operates an aquarium and water park in Orlando, Florida. In addition to daily admission tickets...
Intermediate Accounting: Reporting And Analysis
Six measures of solvency or profitability The following data were taken from the financial .statements of Gates...
Corporate Financial Accounting
What is the primary objective of the conceptual systems design phase?
Accounting Information Systems
At the end of April, the first month of operations, the following selected data were taken from the financial s...
Financial Accounting
What is a mortgage note?
Financial & Managerial Accounting
What are the basic classifications found on an income statement for a merchandising business as compared to a s...
College Accounting (Book Only): A Career Approach
Refer to Table 1.6. a. What is the average cost for the tablets? b. Compare the average cost of tablets with a ...
STATISTICS F/BUSINESS+ECONOMICS-TEXT
The problem of time inconsistency applies to fiscal policy as well as to monetary policy. Suppose the governmen...
Brief Principles of Macroeconomics (MindTap Course List)
Given a description of a companys marketing mix, classify the elements of the marketing mix and the category of...
Contemporary Marketing
Identify strategic alternatives and know a basic outline for a marketing plan
MKTG 12:STUDENT ED.-TEXT
The nation of Ectenia has 20 competitive apple orchards, all of which sell apples at the world price of 2 per a...
Principles of Economics (MindTap Course List)
EVA For 2014, Everyday Electronics reported 22.5 million of sales and 18 million of operating costs (including ...
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Is a lighthouse a public good if it benefits many ship owners? What if it primarily benefits ships going to a p...
Exploring Economics
MULTINATIONAL FINANCIAL MANAGEMENT Citrus Products Inc. is a medium-sized producer of citrus juice drinks with ...
Fundamentals of Financial Management (MindTap Course List)
Discuss the differences between statistics as numerical facts and statistics as a discipline or field of study.
Statistics for Business & Economics, Revised (MindTap Course List)
(Sunk Cost and Choice) Suppose you go to a restaurant and buy an expensive meal. Half way through, despite feel...
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Name and explain four different types of batch totals that could be calculated in a batch processing system.
Accounting Information Systems
INTEREST RATE DETERMINATION Maria Juarez is a professional tennis player, and your firm manages her money. She ...
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Why must researchers document their sources meticuousIy?
Essentials of Business Communication (MindTap Course List)
Pat and Kris arc roommates. They spend most of their time studying (of course), but they leave some time for th...
Essentials of Economics (MindTap Course List)
To tap into the experience of battle-tested soldiers, the U.S. Army began encouraging personnel from all ranks ...
Management, Loose-Leaf Version
What is commodity money? What is flat money? Which kind do we use?
Principles of Macroeconomics (MindTap Course List)
If a nation has high and persistent inflation, the most likely explanation is a. the central bank creating exce...
Principles of Microeconomics (MindTap Course List)
What are the major types of employee benefits?
Foundations of Business (MindTap Course List)
WORKERS COMPENSATION INSURANCE AND ADJUSTMENT Columbia Industries estimated that its total payroll for the comi...
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
The __________ represents the sequence of steps in the accounting process. a. fiscal year b. fiscal period c. a...
College Accounting (Book Only): A Career Approach
What is an opportunity cost? How is this concept used in TVM analysis, and where is it shown on a time line? Is...
Fundamentals of Financial Management (MindTap Course List)
What are e-invoices and e-payments?
Pkg Acc Infor Systems MS VISIO CD
List and describe six costs of inflation.
Principles of Macroeconomics (MindTap Course List)
Ratio of cash to monthly cash expenses Kips Bay Medical Inc. is a medical device company that develops, produce...
Survey of Accounting (Accounting I)
A. How does the rate earned on total assets differ from the rate earned on stockholders' equity? B. Which ratio...
Corporate Financial Accounting
Patricks Fine Foods employs five people. For each person, compute the amount of OASDI and HI tax for the first ...
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Chandler Oil has 5000 barrels of crude oil 1 and 10,000 barrels of crude oil 2 available. Chandler sells gasoli...
Practical Management Science
Anglin Company, a manufacturing firm, has supplied the following information from its accounting records for th...
Cornerstones of Cost Management (Cornerstones Series)
A bank reduces its deposits at the bed by 5 million and increases its vault cash by 5 million. What happens to ...
Macroeconomics
In which of the following market structures can firms be price makers? a. monopoly, monopolistic competition, a...
Economics For Today
Give an arithmetic example to illustrate the difference between the marginal and average tax rates.
Economics (MindTap Course List)
Managing Supplier Quality: Integrated Devices Bill Edwards is a quality engineer assigned to the Injected Moldi...
Purchasing and Supply Chain Management
