PROBLEM:

Presented below is information for Oakley Company for the month of December 31, 2019.

Beginning Inventory200,000

Ending Inventory189,000

Freight in12,000

Freight-out7,500

Insurance expense5,000

Interest Expense4,000

Interest Revenue6,500

Purchase discounts18,000

Purchase return and allowances25,000

Purchase274,000

Rent expense36,000

Salaries and wages expense75,000

Sales discounts8,800

Sales returns and allowances11,000

Sales revenue425,000

Instructions

(a)Prepare partial multiple-step income statement through gross profit.

(b) Optional - Bonus (5 puntos) complete the multiple-step income statement.