Prepare a Multiple-step income statement

Exercise 13-7 (Part Level Submission) Shrunk Inc. has recorded all necessary adjusting entries, except for income tax expense, at its fiscal Year end. Suly 31, 2014. The following information has been taken from the adjusted trial balance: Accounts payable $23,000 interest expense 54,100 Cash dividends-common 61,000 Notes payable 100,000 Common shares 193,000 Retained earnings (Aug. 1, 2013) 358,900 Cost of goods sold 308,000 Salaries expense 134,000 Dividends payable 14,000 Sales 663,000 Income tax expense 30,000 Supplies expense 12.000 Income tax payable 3,400 Uneamed revenue 12,800 All accounts have normal balances and total assets equal $819,000. Shrunk has a 30% income tax rate. SHRUNK INC. Income Statement Year Ended July 31, 2014