The adjusted trial balance of McCoy Company included the following selected accounts:
Debit Credit
Sales Revenue $645,000
Interest Revenue 25,000
Cost of Goods Sold $396,000
Freight-Out 2,000
Advertising Expense 15,000
Interest Expense 19,000
Salaries and Wages Expense 84,000
Utilities Expense 23,000
Depreciation Expense 3,500
Sales Returns and Allowances 50,000
Sales Discounts 9,500
Income Tax Expense 15,000
Instructions
- Use the above information to prepare a multiple-step income statement for the year ended December 31, 2014.
- Calculate the profit margin and gross profit rate.
Grid paper is provided on the next page.
| McCoy Company | ||
| Income Statement | ||
| (date) | ||
Profit Margin Rate:
Gross Profit Rate:
