CP6-4 Preparing a multi step income statement with sales discounts and sales returns and allowances and computing Gross profit percentage.

CP6-4 Preparing a Multistep Income Statement with Sales Discounts and Sales Returns and Allow The following information applies to the questions displayed below Psymon Company, Inc. 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: DebitsMilllCredits Cash $52,500 22,000 80,000 60,000 Inventory Property and Equipment Accumulated Depreciation Liabilities Common Stock Retained Earnings, January 1 Sales Revenue Sales Returns and Allowances Sales Discounts Cost of Goods Solcd Salaries and Wages Expense Office Expense Interest Expenses Income Tax Expense $ 25.200 37000 110,000 13,600 227000 8,000 10,000 122,000 21,000 22,000 3,000 12,300 Totals $412,800 $412.800