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The following selected accounts and their current balances appear in the ledger of Fernandez Co. at the end of its fiscal year. Cash $250,000 Retained

The following selected accounts and their current balances appear in the ledger of Fernandez Co. at the end of its fiscal year.

Cash $250,000 Retained Earnings $2,850,000
Accounts Receivable 1,197,000 Dividends 50,000
Inventory 1,790,000 Sales 9,350,000
Estimated Returns Inventory 23,500 Cost of Goods Sold 5,840,000
Office Supplies 14,000 Sales Salaries Expense 820,000
Prepaid Insurance 8,500 Advertising Expense 350,000
Office Equipment 870,000 Depreciation Expense-Store Equipment 120,000
Accumulated Depreciation-Office Equipment 580,000 Miscellaneous Selling Expense 58,000
Store Equipment 2,600,000 Office Salaries Expense 550,000
Accumulated Depreciation-Store Equipment 820,000 Rent Expense 104,000
Accounts Payable 336,000 Depreciation Expense-Office Equipment 60,000
Customer Refunds Payable 39,000 Insurance Expense 50,000
Salaries Payable 43,000 Office Supplies Expense 26,000
Notes Payable (long-term) 200,000 Miscellaneous Administrative Expense 12,000
Common Stock 600,000 Interest Expense 25,000

Required

Prepare a multiple-step income statement for Fernandez Co. for the year ended December 31. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. A colon (:) will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Prepare a multiple-step income statement for Fernandez Co. for the year ended December 31. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. A colon (:) will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Fernandez Co.

Income Statement

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Labels
Administrative expenses
December 31
For the Year Ended December 31
Operating expenses
Other revenue and expense
Selling expenses
Amount Descriptions
Gross profit
Net income
Net loss
Operating income
Operating loss
Total administrative expenses
Total operating expenses
Total selling expenses

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