Multi-step Income Statements The adjusted trial balance of Crane Distributors on December 31, 2013 is shown below.
| CRANE DISTRIBUTORS Adjusted Trial Balance December 31, 2013 | ||
|---|---|---|
| Debit | Credit | |
| Cash | $41,040 | |
| Accounts Receivable | 297,540 | |
| Inventory | 226,800 | |
| Prepaid Insurance | 6,480 | |
| Supplies | 17,280 | |
| Delivery Equipment | 216,000 | |
| Accumulated Depreciation | $94,500 | |
| Accounts Payable | 189,000 | |
| Common Stock | 270,000 | |
| Retained Earnings | 113,400 | |
| Sales Revenue | 2,121,660 | |
| Cost of Goods Sold | 1,386,180 | |
| Salaries Expense | 318,600 | |
| Rent Expense | 108,000 | |
| Supplies Expense | 22,680 | |
| Utilities Expense | 10,800 | |
| Depreciation Expense | 43,200 | |
| Insurance Expense | 12,960 | |
| Income Tax Expense | 81,000 | |
| Totals | $2,788,560 | $2,788,560 |
Prepare a multi-step income statement for the year ended December 31, 2013. Combine all the operating expenses into one line on the income statement for selling, general and administrative expenses.
Do not use negative signs for your answers.
| CRANE DISTRIBUTORS Income Statement For the Year Ended December 31 | |
|---|---|
| $ | |
| Gross profit on sales | |
| Operating expenses | |
| Income before income taxes | |
| Net Income | $ |
