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Answer all the questions, i will give u a thumb! Trenton Company is a plumbing supply store. Up until 2016, Trenton has prepared its income
Answer all the questions, i will give u a thumb!
Trenton Company is a plumbing supply store. Up until 2016, Trenton has prepared its income statement using the single-step format. Management has made the decision to begin using the multiple-step format for its income statement. The revenues and expenses for Trenton Company are presented below. Use these amounts to complete each of the components of the multiple-step income statement below. You will need to calculate the income tax expense. Trenton Company is taxed at a rate of 35%. Trenton Co. Income Statement For the Year Ending December 31, 2016 Revenues: Sales $100,000 4,000 Interest revenue Total revenues $104,000 Expenses: Cost of goods sold Advertising expense Salaries expense $34,000 10,080 9,240 8,680 2,000 Utilities expense Interest expense Income tax expense ??? Total expenses ??? Net income $26,000 Sales $ 100,000 34,000 Cost of goods sold Gross profit $ 66,000 Operating Expenses: Advertising expense $ 10,080 Salaries expense 9,240 V Utilities expense 3,680 Total operating expenses 28,000 Operating income 38,000 Other revenue and expenses: Interest revenue $ 4,000 Interest expense 2,000 Excess of other revenues over other expenses Income before taxes Income tax expense Net incomeStep by Step Solution
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