Problem
The following is a partial Adjusted Trial Balance for Alpha Company for the month:
|
Alpha Company
Adjusted 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
|
150
|
|
|
Depreciation Expense
|
145
|
|
|
Freight Out
|
70
|
|
|
Income Tax Expense
|
500
|
|
|
Salaries Expense
|
500
|
|
|
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.