The current year's statement of net income for Ken's Kitchens, Inc. is presented below in a single-step format.

Requirement

Prepare Ken's Kitchens income statement using a multiple-step format.

Ken's Kitchens, Inc.

Income Statement

For the Year Ended December 31

Revenues and Gains

Sales

$920,000

Interest Income

350

Dividend Income

960

Gain on Sale of Investment Securities

5,700

Unrealized Gain on Trading Securities

7,000

Total Revenues and Gains

$934,010

Expenses and Losses

Cost of Goods Sold

$59,000

Selling Expenses

42,000

Sales Salaries Expense

30,000

Advertising Expense

20,000

Depreciation Expense-General

3,700

Amortization Expense-General

3,400

Office Salaries Expense

35,000

Office Supplies Expense

31,000

Loss on Asset Impairment

3,400

Legal Fees-General

2,700

Accounting Fees-General

5,100

Interest Expense

5,200

Income Tax Expense at 35%*

242,729

Total Expenses and Losses

(483,229)

Income from Continuing Operations

$450,781

Gain on Discontinued Operations-net of tax

3,835

Net Income

$454,616

*35% x ($934,010-$240,500) = 35% x $693,510 = $242,729

Prepare

Ken's Kitchens'Ken's Kitchens'

multiple-step income statement for the current year, one section at a time. (List the subheadings in the order they are typically shown on a multiple-step income statement. Round all amounts to the nearest whole dollar. Use parentheses or a minus sign to enter other expenses or a loss.)

- Ken's Kitchens, Inc. Statement of Net Income For the Year Ended December 31 Less