Intermediate Accounting I

Prepare a multiple step income statement based on the following account balances:

INSTRUCTIONS Prepare a multiple step income statement based on the following account balances: Sales $1,300,000 Allowance for doubtful accounts 45,000 Bad debt expense 30,000 Beginning inventory 40,000 Ending inventory 30,000 Depreciation expense 90,000 Dividends declared 25,000 Freight in 20,000 Freight out 18,000 Loss from discontinued operations 80,000 Loss from earthquake damage 22,000 Loss from sale of Available for Sale securities 7,000 Lottery winnings 50,000 Prepaid insurance 25,000 Purchases 600,000 Purchase returns 20,000 Purchase discounts 10,000 Rent expense 100,000 Salary expense 240,000 Sales returns 20,000 Sales discounts 8,000 Unrealized loss from Available for Sale securities 42,000 Unrealized gain from Trading securities 25,000 Unearned rent revenue 15,000 Income tax rate 20%