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Five star enterprises is involved in sales of educational materials. The firm presents the following information for the year ended 2020: AED Salaries 15,000 Sales
Five star enterprises is involved in sales of educational materials. The firm presents the following information for the year ended 2020:
| AED |
Salaries | 15,000 |
Sales | 150,000 |
Sales returns | 5,000 |
Rental revenue | 20,000 |
Depreciation of sales van | 4,000 |
Sales commission paid | 5,000 |
Interest expenses | 3,000 |
Income tax | 15,000 |
Cost of goods sold | 70,000 |
Advertising expenses | 10,000 |
Required:
Prepare an income statement for the year 2020 using the multiple-step format. Common shares outstanding for 2020 is 40,000.
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