ch5-7

Exercise 5-18 (Algo) Preparing a multiple-step income statement LO P4 Fit-for-Life Foods reports the following income statement accounts for the year ended December 31. Gain on sale of equipment $ 6,250 Depreciation expense-office copier $ 420 Office supplies expense 790 Sales discounts 15, 200 Insurance expense 1,240 Sales returns and allowances 3,900 225,000 TV advertising expense 3,000 office salaries expense 32,100 Interest revenue Rent expense-Selling space 10,500 Cost of goods sold 88.800 Sales staff wages 22,400 Sales commission expense 13,600 Sales 660 ces Prepare a multiple-step income statement. $ 225,000 FIT-FOR-LIFE FOODS Income Statement For Year Ended December 31 Sales Less Sales discounts $ Les Sales returns and allowances Not sales 'Cost of goods sold Gross profit Expenses Selling expenses Rent expense Selling Space Sales larm 15.200 3,9001 19,100 205,900 88,800 117.100 10,500 904 FIT-FOR-LIFE FOODS Income Statement For Year Ended December 31 $ 225,000 $ 15,200 3,900 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 salaries expenses TV advertising expense Sales commission expense 19,100 205,900 88,800 117,100 es 10,500 22,400 3,000 13,600 49,500 Total selling expenses General and administrative expenses Office supplies expense Insurance expense Office salaries expense Depreciation expense-Office copler 790 1,240 32,100 420 Total general and administrative expenses 24 CEA TV advertising expense Sales commission expense 3,000 13,600 49,500 Total selling expenses General and administrative expenses Office supplies expense Insurance expense Office salaries expense Depreciation expense-Office copier 790 1,240 32,100 420 Total general and administrative expenses Total expenses Income from operations Other revenues, gains, expenses & losses Gain on sale of equipment Interest revenue 34,550 84,050 33,050 6,250 660 Total other revenues, gains, expenses & losses Net Income 6,910