Hill Company prepares quarterly and year-to-date interim reports. The following is its interim income statement for the quarter ended March 31, 2016:

On June 30, 2016, Hill€™s accountant completed a worksheet in preparation for developing the year-to-date interim income statement. The following are the accounts and amounts listed on the income statement debit and credit columns of this worksheet:

Required:
Assuming 20,000 shares of common stock have been outstanding for the entire 6 months, prepare:
1. Hill€™s year-to-date interim income statement for the first 6 months of 2016.
2. Hill€™s interim income statement for the second quarter of 2016.

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Sales (net) Cost of goods sold Gross profit Operating expenses $150,000 90 60,000 Selling expenses General expenses Depreciation expense $18,000 10,600 8.00028.200 36 Pretax operating income Other items: $ 600 Dividend revenue Interest expense 1,00 Income before incometaxes Income lax expense Nel income Earnings per share 120,000 shares) 23,000 16,000 0.80 Debit Credit $340,000 500 1,000 Sales (net) Interest revenue Dividend revenue Cost of goods sold Selling expenses General expenses Depreciation expense Interest expense Income tax expense $190,000 50,000 20,000 16,000 2,100 19,200