# Practice Income Statement Questions

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## Income Statement Definition

If you want to have information about the company’s income and expenses, then you should search for its Income statement.

An income statement of the company reports its income (revenue & profit earned) and expenses( expenses incurred) over a specified period of time.

## Income Statement Practice Questions

### Question: 1

For the fiscal year 2020, an income statement showed net sales of \$1,000,000, cost of goods sold of \$430,000, and overall operating expenses of \$370,000.

1. Calculate gross profit for the year 2020?
2. Calculate the operating net profit for the year 2020?

### Question: 2

The following data was gathered from different companies’ income statements for the year 2021.

 X Company Y Company Z Company Sales \$475,000 \$800,000 ? Sales return & allowance 37,000 ? 24,000 Sales discount 15,000 10,000 17,000 Net sales ? 750,000 ? Cost of goods sold 350,000 ? 550,000 Gross profit ? 350,000 125,000

### Question: 3

The following data was gathered from a portion of XYZ Company’s adjusted trail balance.

 Sales \$800,000 Sales return & allowance 37,000 Sales discount 15,000 Cost of goods sold 415,000 Supplies expense 2,500 Salaries expense 28,000 Advertising expense 5,000 Depreciation expense 10,000 Interest expense 1,000

Required:

Prepare an income statement for the period ending 2021.

### Question: 4

An adjusted trail balance was provided by Subhan Company as of December 31, 2019. On Jan 1st, the company possess merchandise inventory of \$5,000.

 Sales \$100,000 Sales return & allowance 800 Sales discount 1,000 Purchases 70,000 Insurance charges 6,000 Purchase discount 600 Freight in 400 Depreciation expense 2,000 Salaries expense 6,000 Merchandise inventory 20,000 Advertising expenses 1,000 Tax expense 7,500 Interest expense 1,000

Required:

Prepare an income statement for the period ending 2019.

### Question: 5

The trial balance was taken from Bajaj’s accounts as of December 31, 2014.

 Purchases & Sales \$97,500 \$150,000 Carriage inwards 550 Discount allowed & discount received 400 750 Carriage outwards 300 Return inwards and return outwards 4,000 3,500 Inventory as at 1 January 2014 16,000 Advertising 1,250 Dividend received 300 Rental 3,000 3,900 Bad debt 1,800 Salary expenses 9,000 Utilities expense 1,500 Insurance expense 2,000 Cash 2,600 Bank 7,600 Account receivables and account payables 50,000 68,000 Capital 154,950 Loan 90,000 Freehold premises 200,000 Furniture 8,000 Motor vehicles 52,000 Investment 32,000 Accumulated depreciation (furniture) 3,200 Accumulated depreciation (motor vehicle) 15,600 Drawing 1,200 . 490,700 490,700

1. Inventory as of 31 December 2014 was valued at \$52,000.
2. The rental received is for the period from Jan 2014 to 31 March 2015.
3. \$200 of utilities was paid in advance.
4. The owner had withdrawn 1,300 in goods for his family’s use and no record was made.
6. Insurance amounting to \$1,000 was still outstanding at the end of the accounting period.
7. Depreciation is to be charged as follows:
1. Furniture – 20% per annum on cost, straight-line method.
2. Motor vehicles \$5,200 per year.
8. Interest on the loan at 5% per annum has not been paid.

Required:

Prepare an income statement for the period ending 2014.

### Question: 6

The following data are related to Mr. Junaid after adjustment at Dec 31, XXXX:

• Sales                                               \$250,000
• Merchandise inventory (opening)        10,000
• Purchases 53,000
• Commission income                              1,000
• Sales discount                                       5,000
• Junaid Drawing                                    19,000
• Utility expense                                       4,000
• Depreciation expense                            5,000
• Salaries expense                                 10,000
• Rent expense payable                         11,000
• Allowance for bad debts                       11,000
• Merchandise inventory (ending)           15,000

Required:

Prepare an income statement with the help of above data.

### Income Statement Anwers

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She is a Xero Advisor Certified and Remote Account Assistant, where she prepare monthly financial reports for the clients. She is a highly motivated and detail-oriented individual with a passion for learning.