Reference no: EM132800422

Question - The following selected accounts and their current balances appear in the ledger of Fernandez Co. at the end of its fiscal year.

Cash $250,000

Retained Earnings 2,850,000

Accounts Receivable 1,197,000

Dividends 50,000

Inventory 1,790,000

Sales 9,350,000

Estimated Returns Inventory 23,500

Cost of Goods Sold 5,840,000

Office Supplies 14,000

Sales Salaries Expense 820,000

Prepaid Insurance 8,500

Advertising Expense 350,000

Office Equipment 870,000

Depr. Exp.-Store Equip. 120,000

Accum. Depr.-Office Equip. 580,000

Miscellaneous Selling Expense 58,000

Store Equipment 2,600,000

Office Salaries Expense 550,000

Accum. Depr.-Store Equip. 820,000

Rent Expense 104,000

Accounts Payable 336,000

Depr. Exp.-Office Equip. 60,000

Customer Refunds Payable 39,000

Insurance Expense 50,000

Salaries Payable 43,000

Office Supplies Expense 26,000

Notes Payable (long-term) 200,000

Miscellaneous Admin. Exp. 12,000

Common Stock 600,000

Interest Expense 25,000

Required - Prepare multiple-step income statement for Fernandez Co. for the year ended December 31.