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22 August, 17:21

Fit-for-Life Foods reports the following income statement accounts for the year ended December 31.

Gain on sale of equipment $ 6,250 Depreciation expensesOffice copier $ 500

Office supplies expense 700 Sales discounts 16,000

Insurance expense 1,300 Sales returns and allowances 4,000

Sales 220,000 TV advertising expense 2,000

Office salaries expense 32,500 Interest revenue 750

Rent expenses Selling space 10,000 Cost of goods sold 90,000

Sales staff wages 23,000 Sales commission expense 13,000

Prepare a multiple-step income statement.

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  1. 22 August, 20:33
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    Fit-for-Life Foods

    Multi Step Income Statement for the year ended 31 Dec

    $ $

    Sales $220,000

    Sales Discounts $16,000

    Sales returns & Allowances $4,000 $20,000

    Net Sales $200,000

    Cost of Goods Sold $90,000

    Gross Profits $110,000

    Expenses

    Selling Expenses:

    Rent Expenses Selling Space $10,000

    Sales Staff Wages $23,000

    TV Advertising Expense $2,000

    Sales Commission Expense $13,000

    Total Selling expenses $48,000 ($48,000)

    General & Administrative expenses:

    Office Supplies expense $700

    Insurance expense $1,300

    Office Salaries Expenses $32,500

    Depreciation expense $500

    Office Copier

    Total general and administrative $35,000 ($35,000)

    expenses

    Operating Income $27,000

    Other Revenues, gains expense and losses:

    Gain on Sale of Equipment $6,250

    Interest Revenue $750

    Total other revenues gains $7,000 ($7,000)

    expenses and losses

    Net Income $20,000
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