1. Prepare a multistep income statement that would be used for external reporting purposes.

! Required information CP6-5 (Algo) Preparing a Multistep Income Statement and Computing the Gross Profit Percentage (LO 6-6) [The following information applies to the questions displayed below.) Psymon Company, Incorporated, sells construction equipment. The annual fiscal period ends on December 31. The following adjusted trial balance was created from the general ledger accounts on December 31: Credits Debits $ 56, 720 23,600 86,000 64,000 Account Titles Cash Accounts Receivable Inventory Property and Equipment Accumulated Depreciation Accounts Payable Common Stock Retained Earnings, January 1 Sales Revenue Cost of Goods Sold Salaries and Wages Expense Office Expense Interest Expense Income Tax Expense Totals $ 26,900 39,800 118,000 14,400 225,800 131,600 22,600 23,600 3,400 13,380 $ 424,900 $ 424,900 CP6-5 (Algo) Part 1 O Required information 112 Answer is not complete. PSYMON COMPANY, INCORPORATED Income Statement At December 31 Sales Revenue 3:11:01 Cost of Goods Sold $ 225,800 131,600 94,200 Gross Profit Salaries and Wages Expense Office Expense Income from Operations Interest Expense Income before Income Tax Expense OOOO 22,600 23,600 46,200 x (3,400) 42,800 Income Tax Expense Net Income 13,380 Mc Graw Hill