Reference no: EM132985517

The following income statement items, arranged in alphabetical order, are taken from the records of Shaw Corporation for the current year:

Advertising expense$1,549

Interest expense$1,397

Commissions expense2,234

Interest revenue1,343

Cost of goods sold29,283

Rent revenue7,045

Depreciation expense - office building3,049

Salaries and wages expense-office11,456

Income tax expense1,484

Sales revenue48,131

Insurance expense - salesperson's auto2,141

Supplies expense-office803

Required:

Assume that Shaw Corporation classifies all operating expenses into two categories: (1) selling and (2) general and administrative.

Problem 1. Prepare a multiple-step income statement for the current year.