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Problem
The following is a partial Adjusted Trial Balance for Alpha Company for the month:
Alpha CompanyAdjusted Trial Balance (partial)January 31, 2016
Accounts
Debit
Credit
Inventory
$2,750
Sales
$12,500
Sales Discounts
200
Sales Returns & Allowances
1,200
Purchases
4,000
Purchases Discounts
150
Purchase Returns & Allowances
450
Freight In
50
Advertising Expense
Depreciation Expense
145
Freight Out
70
Income Tax Expense
500
Salaries Expense
Utilities Expense
100
Additionally, Inventory for December 31, 2015 was $2,700. Prepare a multiple-step income statement. Prepare a partial multiple-step income statement that includes the Sales, Cost of Goods Sold sections & gross profit.
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This problem is based on the 2011 annual report of Campbell Soup Company in the appendix.
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