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 $ 6,290 Depreciation expense-Office copier 750 Sales discounts 1,210 Sales returns and allowances 215,000 TV advertising expense 31,500 Interest revenue 11,300 Cost of goods sold 22,300 Sales commission expense $ 550 15,000 4,100 4,000 790 91,900 12,300

Answer 1

Less: Operating expenses Amount $ Amount $ 2,15,000 (15,000) (4,100) 1,95,900 91,900 1,04,000 Income statement for the year ended 31st December :- Particulars Operating Revenue :- Sales Less: Sales discounts Less: Sales returns and allowances Net sales (A) Less: Cost of goods sold (B) Gross Profit (A-B)=C Less: Operating expenses Selling expenses Rent expense - Selling space Sales staff wages TV advertising expense Sales commission expense Total Selling expenses (D) General and Administrative expenses Office salaries expense Office supplies expense Insurance expense Depreciation expense - Office copier Total General and Administrative expenses ('E) Total Operating expenses (D+E)=F Income from Operations (C-F)=G Other Income/Revenues/Gains/(Expenses)/(Losses) :- 11,300 22,300 4,000 12,300 49,900 31,500 750 1,210 550 34,010 83,910 20,090 790 6,290 Interest revenue Gain on sale of Equipment Other Income/Revenues/Gains/(Expenses)/(Lossese) (H) Net Income (G+H) 7,080 27,170