Question

1 QS 4-12 Preparing a multiple-step income statement LO P4 Save-the-Earth Co. reports the following Income statement accounts for the year ended December 31. ats $ eBook Sales discounts Office salaries expense Rent expense-Office space Advertising expense Sales returns and allowances Office supplies expense Cost of goods sold Sales Insurance expense Sales staff salaries 830 2,800 2,300 660 330 660 12,600 36, eee 1,800 3,300 Hint Ask Required: Prepare a multiple-step Income statement for the year ended December 31. eferences Save-the-Earth Co. Income Statement For Year Ended December 31 Expenses Selling expenses Total selling expenses General and administrative expenses Total general and administrative expenses Total expenses

Answer 1

	SAVE THE EARTH CO
	INCOME STATEMENT
	FOR THE YEAR ENDED DEC 31
		$
sales		36000
less: sales discount	830
sales return and allowances	330	1160
Net sales		34840
less: cost of goods sold		10600
Gross margin		24240
Expenses
Selling expenses
Advertising Expenses	660
sales staff salaries	3300
Total selling expenses	3960
General and administrative exp
office salaries expense	2800
rent expense office	2300
office supplies expense	660
insurance	1800
Total general exp	7560
Total expenses		11520
Net Income	$	12720