Question

Fit-for-Life Foods reports the following income statement accounts for the year ended December 31. Gain on sale of equipment Office supplies expense Insurance expense Sales Office salaries expense Rent expense-Selling space Sales staff wages $ 6,260 Depreciation expense-Office copier $ 740 Sales discounts 1,220 Sales returns and allowances 229,000 TV advertising expense 32,200 Interest revenue 10,700 Cost of goods sold 23,400 Sales commission expense 490 16,600 4,100 2,900 710 91,300 12,000 Prepare a multiple-step income statement. FIT-FOR-LIFE FOODS Income Statement For Year Ended December 31 Expenses Selling expenses

Answer 1

229,000 $ 16,600 4,100 $ $ $ 20,700 208,300 91,300 117,000 FIT-FOR-LIFE FOODS Income Statement For Year Ended December 31 Sales Less: Sales discounts $ Less: Sales returns and allowances $ Net sales Cost of goods sold Gross profit Expenses: Selling expenses Rent expense-Selling space $ Sales staff wages TV advertising expense $ Sales commission expense $ Total selling expenses General and administrative expenses Office supplies expense Insurance expense Office salaries expense Depreciation expense-Office copier Total general and administrative expenses Total expenses Income from operations Other revenues, gains, expenses & losses Gain on sale of equipment Interest revenue $ Total other revenues, gains, expenses & losses Net income ԱԴ ԱԴ ԱԴ ԱԴ 10,700 23,400 2,900 12,000 $ 49,000 740 1,220 32,200 490 $ $ 34,650 83,650 33,350 es 6,260 710 $ $ 6,970 40,320