The following income statement was prepared by an office clerk hired for July. As the accounting supervisor, you recognize that it is incorrect and prepare a corrected multi-step income statement.

Demo Sales

Income Statement

For Month Ended July 31, 2023

Sales $ 563,840

Accounts receivable 37,850

Unearned sales 18,340

Net sales $ 620,030

Operating expenses:

Accumulated depreciation, equipment $ 30,850

Advertising expense 14,340

Cost of goods sold 397,400

Depreciation expense, equipment 3,340

Insurance expense 2,670

Interest expense 2,040

Interest payable 335

Jen Conway, withdrawals 14,170

Office supplies 10,700

Prepaid insurance 17,400

Prepaid rent 25,850

Rent expense 6,020

Salaries payable 175,200

Sales discounts 3,140 703,455

Loss $ 83,425