Reference no: EM132463255

Question 1: Prepare a multiple-step income statement.

$ 219,000 15,800 4,000 FIT-FOR-LIFE FOODS Income Statement For Year mEnded December 31 Sales Less:

Sales discounts Add: Sales returns and allowances Net sales Cost of goods sold Gross profit Expenses Selling expenses Rent expense-Selling space Sales staff wages TV advertising expense Sales commission expense 19,800 199,200 (199,200) 10,300 22,100 4,000 14,000 50,400

Total selling expenses General and administrative expenses Office supplies expense Insurance

• expense Office salaries expense Depreciation expense-Office copier 770 1,250 31,200 550
• Total general and administrative expenses Total expenses 33,770 84,170 (84,170)
• Other revenues, gains, expenses & losses Gain on sale of equipment Interest revenue 6,290 730
• Total other revenues, gains, expenses & losses 7,020 31,050 Net income