Psymon Company, Inc. 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:

Required:

1.

Prepare a multistep income statement that would be used for internal reporting purposes. Treat Sales Discounts and Sales Returns and Allowances as contra-revenue accounts. TIP: Some of the accounts listed will appear on the balance sheet rather than the income statement.

2.

Prepare a multistep income statement that would be used for external reporting purposes, beginning with the amount for Net Sales.

3.	Compute the gross profit percentage. (Round your answer to 1 decimal place.)

Debits $ 47,250 20,000 72,500 55,000 Account Titles Cash Accounts Receivable Inventory Property and Equipment Accumulated Depreciation Liabilities Common Stock Retained Earnings, January Sales Revenue Sales Returns and Allowances Sales DISCOunts Cost of Goods Sold Salaries and Wages Expense Office Expense Interest Expenses ncome Tax Expense Credits $ 23,100 33,500 100,000 12,600 204,500 7,500 9,000 110,000 19,000 20,000 2,500 10,950 Totals $373,700 373,700