t for P5-5A An inexperienced accountant prepared this condensed income statement Simon Company, a retail firm that has been in business for a number of years. SIMON COMPANY Income Statement For the Year Ended December 31, 2017 Revenues Net sales Other revenues $850,000 22,000 872,000 555,000 317,000 Cost of goods sold Gross profit Operating expenses Selling expenses Administrative expenses 109,000 103,000 212,000 $105,000 Net earnings As an experienced, knowledgeable accountant, you review the statement and determine the following facts. 1. Net sales, as presented, consist of sales $911,000, less freight-out on merchandise sold $33,000, and sales returns and allowances $28,000. 2. Other revenues, as presented, consist of sales discounts $18,000 and rent revenue $4,000. 3. Selling expenses, as presented, consist of salespersons' salaries $80,000, depreciation on equipment $10,000, advertising $13,000, and sales commissions $6,000. The com- missions represent commissions paid. At December 31, $3,000 of commissions have but have not been paid. All compensation should be been earned by salespersons recorded as Salaries and Wages Expense. 4. Administrative expenses, as presented, consist of office salaries $47,000,d $18,000, utilities $12.000, interest expense $2.000, and rent expense $24,000, which interest expense $2,000, and rent expense $24,000, which includes prepayments totaling $6,000 for the first quarter of 2018. Instructions Prepare a correct detailed multiple-step income statement. Assume a 25% tax rate P5-6A The trial balance of People's Choice Wholesale Company contained the following accounts shown at December 31, the end of the company's fiscal year