The following income statement contains errors.

Curbstone Company

Income Statement

For the Year Ended August 31, 2018

1	Sales		$8,595,000.00
2	Cost of goods sold		6,110,000.00
3	Income from operations		$2,485,000.00
4	Operating expenses:
5	Selling expenses	$800,000.00
6	Administrative expenses	575,000.00
7	Delivery expense	425,000.00
8	Total operating expenses		1,800,000.00
9			$685,000.00
10	Other expense:
11	Interest revenue		45,000.00
12	Gross profit		$640,000.00

Identify the errors by preparing a corrected multiple-step income statement. Be sure to complete the statement heading. Refer to the information given in the exercise and to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. In the Other income and expenses section only, enter amounts that represent other expenses as negative numbers using a minus sign.

Labels
August 31, 2018
For the Year Ended August 31, 2018
Operating expenses
Other revenue and expense
Amount Descriptions
Gross profit
Income from operations
Net income
Net loss
Total assets
Total liabilities
Total operating expenses
Total stockholders equity

Identify the errors by preparing a corrected multiple-step income statement. Be sure to complete the statement heading. Refer to the information given in the exercise and to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. In the Other income and expenses section only, enter amounts that represent other expenses as negative numbers using a minus sign.

Curbstone Company

Income Statement

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