The adjusted trial balance for Motion Auto, Inc., as of June 30, 2016, is presented next:

Requirements
1. Prepare the multi-step 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, 2016 ACCOUNT Cash DEBIT $ 20,500 5,600 39,600 900 85,000 CREDIT Accounts Receivable Inventory Supplies Equipment Accumulated Depreciation, Equipment Accounts Payable Unearned Sales Revenue $ 7,600 3,200 3,100 10,000 35,000 Note Payable, Long-Term Common Stock Retained Earnings 59,950 Dividends 22,000 Sales Revenue 221,600 10,100 3,400 105,400 26,800 20,600 Sales Returns and Allowances Sales Discounts Cost of Goods Sold Selling Expense General Expense Interest Expense Total 550 $340,450 $340,450