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An adjusted trial balance of Motor Company as of December​ 31, 2025 is given below.

View the adjusted trial balance.
Prepare a​ multi-step income statement for the year for the company. ​(Use a minus sign or parentheses to show other​ expenses.)

Debit Credit
Cash $15,100
Accounts Receivable 42,300
Merchandise Inventory 60,500
Supplies 15,300
Land 300,200
Accounts Payable $3,900
Notes Payable 25,200
Common Stock 300,100
Retained Earnings 29,900
Dividends 3,700
Sales Revenue 465,300
Cost of Goods Sold 240,700
Salaries Expense 15,800
Utilities Expense 69,400
Rent Expense 54,700
Interest Expense 6,700
Total $824,400 $824,400

1 answer

To prepare a multi-step income statement for Motor Company for the year ending December 31, 2025, we will follow the structure, which includes sales, cost of goods sold (COGS), gross profit, operating expenses, and other expenses. Based on the provided adjusted trial balance, here's how the income statement would look:

Motor Company
Multi-Step Income Statement
For the Year Ended December 31, 2025

Sales Revenue

  • Sales Revenue: $465,300

Cost of Goods Sold

  • Less: Cost of Goods Sold: (240,700)

Gross Profit: $224,600

Operating Expenses

  • Salaries Expense: $15,800
  • Utilities Expense: $69,400
  • Rent Expense: $54,700

Total Operating Expenses: (139,900)

Income from Operations: $84,700

Other Expenses

  • Interest Expense: (6,700)

Total Other Expenses: (6,700)

Net Income: $78,000

Summary

  • Sales Revenue: $465,300
  • Cost of Goods Sold: $(240,700)
  • Gross Profit: $224,600
  • Total Operating Expenses: $(139,900)
  • Income from Operations: $84,700
  • Total Other Expenses: $(6,700)
  • Net Income: $78,000

This format provides a clear representation of the company's profitability, breaking down revenues, costs, and expenses in manageable sections.