Question

The information below relates to the operations of Blossom Corporation for the year ended December 31, 2017:

Cost of goods sold		$329,000
Interest expense		2,590
Sales returns & allowances		9,110
Accounts Payable		120,018
Sales discounts		3,892
Depreciation expense		284,480
Sales Revenue		982,496
Salaries & Wages		163,792
Prepaid expenses		3,670
Rent expense		37,300
Loss-due to fire		8,298
Rental revenue		22,900

Additional information:

•		The effective tax rate is 20%.
•		Depreciation expense: 60% administrative expense and 40% selling expense
•		Salaries & Wages: 35% administrative expense and 65% selling expense
•		Rent expense: 80% administrative expense and 20% selling expense

Prepare a multiple-step income statement in good form by function. (Enter selling expenses before administrative expenses. Round answers to 0 decimal places, e.g. 5,275.)

please make sure that you put every single detal

Answer 1

Blossom Corporation
Income Statement
For the period ended on December 31, 2017
Account Titles	Amount
Sales Revenue	$982,496
Less: Sales Deiscount	($3,892)
Sales return and allowances	($9,110)
Net Sales Revenue		$969,494
Cost of goods sold		$329,000
Gross Profit		$640,494
Selling Expenses:
Depreciation expense	$113,792
Salaries and Wages	$106,465
Rent Expenses	$7,460	$227,717
Administrative Expenses:
Depreciation expense	$170,688
Salaries and Wages	$57,327
Rent Expenses	$29,840	$257,855
Operating Profit		$154,922
Other Revenue and expenses:
Rental Revenue	$22,900
Loss due to fire	$8,298
Interest expense	$2,590
Net other revenue		$12,012
Income before Income Tax		$166,934
Income Tax @ 20%		$33,387
Net Income		$133,547
Working Note:
Selling Expenses:	Total	Percentage	Selling expense
Depreciation expense	$284,480	40%	$113,792
Salaries and Wages	$163,792	65%	$106,465
Rent Expenses	$37,300	20%	$7,460
Selling Expenses:	Total	Percentage	Administrative expense
Depreciation expense	$284,480	60%	$170,688
Salaries and Wages	$163,792	35%	$57,327
Rent Expenses	$37,300	80%	$29,840

Accounts Payable and prepaid expenses are balance sheet items