A part-time bookkeeper prepared this income statement for Maquoketa Company for the year ending December 31, 2007.

MAQUOKETA COMPANY Income Statement December 31, 2007 Revenues Sales $715,000 Less: Freight-out $14,000 Sales discounts 11,300 25,300 Net sales 689,700 Other revenues (net) 1,300 Total revenues 688,000 Expenses Cost of goods sold 450,000 Selling expenses 103,000 Administrative expenses 50,000 Dividends 12,000 Total expenses 615,000 Net income $ 73,000 As an experienced, knowledgeable accountant, you review the statement and determine the following facts.

1.

2.

3:

4.

Sales include $16,000 of deposits from customers for future sales orders.

Other revenues contain two items: interest expense $4,000 and interest revenue $5,300.

Selling expenses consist of sales salaries $76,000, advertising $13,000, depreciation on store equipment $7,500, and sales commissions expense $6,500.

Administrative expenses consist of office salaries $19,000; utilities expense $9,500; rent expense insurance applicable to 2008.

$14,500; and insurance expense $7,000. Insurance expense includes $800 of Instructions Prepare a correct detailed multiple-step income statement.