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20 November, 12:16

On March 31, 2019, the balances of the accounts appearing in the ledger of Racine Furnishings Company, a furniture wholesaler, are as follows: Accumulated Depreciation-Building $747,950 Merchandise Inventory $939,850 Administrative Expenses 545,700 Notes Payable 240,200 Building 2,416,650 Office Supplies 20,650 Cash 180,250 Salaries Payable 7,700 Cost of Merchandise Sold 3,965,850 Sales 6,126,850 Interest Expense 9,550 Selling Expenses 717,650 Kathy Melman, Capital 1,545,600 Store Supplies 87,000 Kathy Melman, Drawing 181,750 a. Prepare a multiple-step income statement for the year ended March 31, 2019. Racine Furnishings Company Income Statement For the Year Ended March 31, 2019

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  1. 20 November, 14:16
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    Net Income $66100

    Explanation:

    Racine Furnishings Company

    Multi Step Income Statement

    For the Year Ended March 31, 2019

    Sales 6,126,850

    Cost of Merchandise Sold 3,965,850

    Gross Profit 2161000

    Less Operating Expenses

    Depreciation $747,950

    Supplies Expense (87000 - 20650) 66350

    Salaries Expense 7,700

    Selling Expenses 717,650

    Administrative Expenses 545,700

    Operating Income 75,650

    Other Expenses

    Interest Expense 9,550

    Net Income $66100

    From the sales cost of merchandise sold is subtracted to get the gross profit. The operating expenses are subtracted from the gross profit to get the operating income. Other expenses such as interest expense is subtracted to get the net income.
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