Problem 3 (15 Points)

The adjusted trial balance of Nick company contained the following information

Debit Credit

Sales Revenue $570,000

Sales Returns and allowances $15,000

Sales Discounts $7,000

Cost of goods sold $323,000

Freight-Out $2.000

Advertising Expense $15,000

Interest Expense $18,000

Salaries and Wages Expense $85,000

Utilities Expense $28,000

Depreciation Expense $7,000

Interest Revenue $27,000

Instructions:

1. Use the above information to prepare multiple step income statement for the year ended December 31st, 2015
2. Prepare single step income statement for the year ended December 31st, 2015.