The adjusted trial balance for Motion Auto, Inc., as of June 30, 2018, is presented next:

Requirements

1. Prepare the multistep income statement for June for Motion Auto, Inc.

2. Calculate the gross profit percentage for June for Motion Auto, Inc.

3. What does Motion Auto, Inc.?s gross profit percentage mean?

Transcribed Image Text:

Motion Auto, Inc. Trial Balance June 30, 2018 ACCOUNT DEBIT CREDIT $ 10,500 15,700 39,600 1,950 900 85,000 Cash Accounts Receivable Inventory Estimated Inventory Returns Supplies Equipment Accumulated Depreciation, Equipment Accounts Payable Estimated Refund Liability $ 7,600 3,200 1,100 Unearned Sales Revenue 1,650 10,000 Note Payable, Long-Term Common Stock 35,000 Retained Earnings 59,950 Dividends Sales Revenue Cost of Goods Sold 22,000 221,700 116,600 26,800 Selling Expense General Expense Interest Expense 20,600 550 $340,200 $340,200 Total