QS 4-17 (Algo) Preparing a multiple-step income statement LO P4 Save-the-Earth Co. reports the following income statement accounts for the year ended December 31. Sales discounts Office salaries expense Rent expense-Office space Advertising expense Sales returns and allowances Office supplies expense Cost of goods sold Sales Insurance expense Sales staff salaries $ 900 3,500 3,000 800 400 800 12,000 50,000 2,500 4,000 Prepare a multiple-step income statement for the year ended December 31. Answer is not complete. Save-the-Earth Co. Income Statement For Year Ended December 31 Sales $ 50,000 $ 400 Less: Sales returns and allowances Less: Sales discounts 900 1,300 $ 400 900 Less: Sales returns and allowances Less: Sales discounts Net sales Cost of goods sold Gross profit Expenses Selling expenses Sales staff salaries Advertising expense 1,300 48,700 12,000 36,700 4,000 800 4,800 Total selling expenses General and administrative expenses Office salaries expense Office supplies expense Insurance expense Rent expense-Office space 3,500 800 3,000 Total general and administrative expenses Total expenses Net income 7,300 12,100 24,600 x $ $ 400 900 Less: Sales returns and allowances Less: Sales discounts Net sales Cost of goods sold Gross profit Expenses Selling expenses Sales staff salaries Advertising expense 1,300 48,700 12,000 36,700 4,000 800 4,800 Total selling expenses General and administrative expenses Office salaries expense Office supplies expense Insurance expense Rent expense-Office space 3,500 800 3,000 Total general and administrative expenses Total expenses Net income 7,300 12,100 24,600 x $