Question

7 Exercise 4-15 Preparing a multiple-step Income statement LO P4 Fit-for-Life Foods reports the following income statement accounts for the year ended December 31. ats $ Gain on sale of equipment Office supplies expense Insurance expense Sales Office salaries expense Rent expense-selling space Sales staff wages $ 6,350 Depreciation expense-office copier 770 Sales discounts 1,240 Sales returns and allowances 215,000 TV advertising expense 31,500 Interest revenue 11, eee Cost of goods sold 23, eee Sales commission expense 680 15,700 4,000 2,180 600 88,180 13,000 eBook Hint Prepare a multiple-step income statement. Ask FIT-FOR-LIFE FOODS Income Statement For Year Ended December 31 eferences Expenses Selling expenses Total selling expenses General and administrative expenses Total general and administrative expenses Total expenses Other revenues, gains, expenses & losses Total other revenues, gains, expenses & losses

Answer 1

Requirement, as asked

Multi Step Income Statement
for the year ended 31 Dec
Sales		$215,000
Sales Discounts	$15700
Sales returns & Allowances	$4,000	$19700
Net Sales		$195,300
Cost of Goods Sold		$88100
Gross Profits		$107200
Expenses
Selling Expenses:
Rent Expenses Selling Space	$11000
Sales Staff Wages	$23,000
TV Advertising Expense	$2,100
Sales Commission Expenses	$13,000
Total Selling expenses	$49100
General & Administrative expenses:
Office Supplies expense	$770
Insurance expense	$1,240
Office Salaries Expenses	$31500
Depreciation expense Office Copier	$600
Total general and administrative expenses	$34,110
Total Expenses		$83,210
Operating Income		$23,990
Other Revenues, gains expense and losses:
Gain on Sale of Equipment	$6350
Interest Revenue	$600
Total other revenues gains expenses and losses		$6950
Net Income		$30,940

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