Rewrite the attached
I need this assignment done in 2 hours. (Use the attached the excel file as it’s)
Multi Step Income Statement There are two forms of income statements that the companies prepare. They are single-step and multiple step income statements. The single-step income statement is easy to prepare but it does not provide valuable details that are provided by multiple step income statement. It gives a deeper look into the performance of the company. It shows revenue in detail and also includes sales return and allowances and discount on sales to calculate net revenue. It consists of itemized list of expenses and revenues. It breaks down the various expenses and income into operating expenses and revenue that are result of the primary business activities of the company. In calculating the net income, a multiple step income statement also calculates gross income and operating income. The gross income and operating income are useful for the investors to compare the performance of the company with other similar companies. To calculate the gross profit cost of goods sold is deducted from net sales. From gross profit the expenses pertaining to selling and distribution expenses, administrative expenses, etc. are deducted to calculate operating income. The adjustments with respect to other income and expenses are made in operating income and the net income before income tax is calculated. The income tax is calculated as a percentage of income before income tax and is deducted from it to calculate net income after taxes. Thereafter the non-recurring income and non-recurring expenses such as gains from discontinued operations is added or loss from discontinued operations is deducted to determine comprehensive income. The accountant of Simon Company has prepared a single step condensed income statement and has also committed a number of mistakes in preparing it. The mistakes of accountants and their appropriate treatment is discussed hereunder. The net sale entered by the accountant is $ 850,000, whereas the net sales will be $ 865,000. To calculate net sales, the sales return and allowances of $ 28,000 and sales discounts of $ 18,000 are deducted from the sales of $ 911,000. The sales discounts are deducted from the sales to arrive at net sales. The accountant has shown the sales discounts as other revenue and has added it to the sale which is wrong as it is a reduction in the money collected from the customers. The freight out on merchandise sold is deducted from the sale by the accountant. It is wrong again as the freight out is a part of selling expenses and should be shown in operating expenses under the head selling expenses. After making the adjustment of the above discussed expenses the net sales comes at $ 865,000. The cost of goods sold is correctly deducted from the net sale to derive gross profit. But due to mistake in adjustments in net sales the gross profit was $ 317,000 whereas the correct gross profit is $ 310,000. The selling expenses of operating section of the income statement show all the selling expenses. The freight out is also treated as a selling expense and has been added to it. The commission paid to sales person is added in salaries and wages. It is assumed that the sales commission of $ 6,000 is already included in salary so it is not shown separately. The sales commission of $ 3,000 which is due but not paid is added to the salaries and wages under the head selling expenses. The administrative expenses of $ 103,000 shown by the accountant are also not correct. The accountant has taken dividend of $ 18,000 as administrative expense whereas dividend is not shown in income statement as it is an appropriation of profits and is shown in statement of retained earnings. The rent expense of $ 6,000 out of total rent expense of $ 24,000 relates to the year 2018. It is a prepaid rent and will be deducted from the rent expense. The rent expense of $ 18,000 will be shown in administrative expenses. The accountant has also shown interest expense of $ 2,000 as a part of administrative expense whereas these expenses are shown separately after calculating operating income. Thus the correct administrative expenses comes to be at $ 77,000 not $ 103,000. The rent revenue of $4,000 will be added and interest expense of $2,000 will be deducted from the operating income to derive the income before taxes. The income before taxes works out to be at $96,000. Thereafter the tax is calculated @ 25% on this income which is $24,000. After deducting income taxes from income before taxes the net income of the Simon Company comes at $72,000.