Question

Fit-for-Life Foods reports the following income statement accounts for the year ended December 31. Slow Gain on sale of equipment Office supplies expense Insurance expense Sales Office salaries expense Rent expense-Selling space Sales staff wages 6,250 Depreciation expense-office copier $ 500 700 Sales discounts 16,000 1,300 Sales returns and allowances 4,000 220,000 TV advertising expense 2,000 32,500 Interest revenue 750 10,000 cost of goods 90,000 13,000 Book 23,000 Sales commission expense Hint Print Prepare a multiple-step income statement rences FIT-FOR-LIFE FOODS Income Statement For Year Ended December 31 / / / / / / / 0 / 1 / / / / / / / / / / / / / / / / / / / / / / Expenses Selling expenses / / / / / / / / / / / / < Prey 4 of 5 Next > docx A 5 Synthesis Essa....pdf Synthesis Essa....pdf Synthesis Essay (1)

Answer 1

220000 FIT-FOR-LIFE FOODS Income Statement For the Year Ended December 31 Sales Less: Sales Discounts Less: Sales returns and allowances Net Sales Cost of goods sold Gross profit 16000 4000 20000 2000001 90000 1100001

Expenses Selling Expenses Rent expense - Selling space Sales staff wages Tv advertising expense Sales Commission expense 10000 23000 2000 13000 48000 Total selling Expenses General and administrative expenses Office supplies expense Insurance expense Office salaries expense Depreciation expenses - Office copier 700 1300 32500 500 35000 83000 27000 Total General and administrative expenses Total expenses Operating Income Other revenue, gains expenses & losses Gain on sale of equipment Interest revenue 6250 750 Total other revenue, Gains, expenses &losses Net Income 7000 34000