(Preparing an income statement, LO 1, 3) The junior accountant for Josselin Ltd. was asked to prepare an income statement and statement of comprehensive income for the year ended October 31, 2014. The accountant summarized the accounts he thought were necessary to prepare the statement but isn’t sure how to proceed. Use the information provided by the junior accountant to prepare the income statement. Note that not all the information provided may be appropriate to use in the income statement.

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Accounts payable Accounts receivable $210,000 Dividends payable $75,000 510,000 Income tax expense 250,000 Advertising expense 195,000 Interest expense 185,000 Other comprehensive Depreciation expense 425,000 income 110,000 Property, plant, and equipment 1,870,000 Other expenses 215,000 Common shares 4,356,000 Salaries and wage expense 498,000 Cost of sales 3,200,000 Sales 6,500,000 Selling, general, and Dividends 300,000 administrative expense 725,000