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CP6-5 (Algo) Preparing a Multistep Income Statement and Computing the Gross Profit Percentage [LO 6- 6) (The following information applies to the questions displayed below)

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CP6-5 (Algo) Preparing a Multistep Income Statement and Computing the Gross Profit Percentage [LO 6- 6) (The following information applies to the questions displayed below) Psymon Company, Incorporated, sells construction equipment. The annual fiscal period ends on December 31. The following adjusted trial balance was created from the general ledger accounts on December 31: Account Titles Debits Credits Cash $ 58,780 Accounts Receivable 24,400 Inventory 89,000 Property and Equipment 66,000 Accumulated Depreciation $ 27,700 Accounts Payable 41,200 Common Stock 122,000 Retained Earnings, January 1 14,800 234,200 Cost of Goods Sold 136,400 Salaries and Wages Expense 23,400 Office Expense 24,400 Interest Expense 3,600 Income Tax Expense 13,920 Totals 5.439,900 $ 439,900 Sales Revenue CP6-5 (Algo) Part 1 Required: 1. Prepare a multistep income statement that would be used for external reporting purposes. TIP: Some of the accounts listed will appear on the balance sheet rather than the income statement PSYMON COMPANY, INCORPORATED Income Statement 0

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