Reference no: EM132638886
Question 1: Drexel Co. had the following lists of some selected accounts taken from its adjusted trial balance at December 31, 2019. Prepare a complete multi-step income statement for 2019.
Accounts payable $10,000; Accounts receivable $14,000
Accumulated depreciation 19,400; Advertising expense 6,500
Sales revenue (gross) 148,000; Common stock 40,000
Cash 50,000; Purchases (net) 66,000
Depreciation expense 11,000; Insurance expense 2,900
Freight out 1,500; Beginning inventory 22,200
Freight in 800; Sales return and allowance 6,800
Prepaid expense 8,200: Retained earnings 64,100
Salaries expense 26,000; Salaries payable 3,800
Supplies expense 2,300; Unearned revenue 6,100
Dividend 4,000; Ending inventory 16,000
Income tax rate = 30%