The following income statement contains errors.
Curbstone Company
Income Statement
For the Year Ended August 31, 2016
1 Sales $8,595,000.00
2 Cost of merchandise 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 income and 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 heading of the statement. 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.
Identify the errors by preparing a corrected multiple-step income statement. Be sure to complete the heading of the statement. 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.