Fit-for-Life Foods reports the following income statement accounts for the year ended December 31 Gain on sale of equipment Office supplies expense Insurance expense Sales office salaries expense 6,250 Depreciation expense-office copier 500 Sales discounts 700 16,000 4,000 2,000 Sales returns and allowances 1,300 220,000 TV advertising expense Interest revenue 32,500 10,000 23,000 Sales commission expense 750 Rent expense-Selling space Sales staff wages Cost of goods sold 90,000 13,000 Prepare a multiple-step income statement. FIT-FOR-LIFE FOODS Income Statement For Year Ended December 31 220,000 Sales Less: Sales discounts Less: Sales returns and allowances 16,000 4,000 20,000 Net sales 200,000 Cost of goods sold 90,000 Gross profit 110,000 Expenses Selling expenses 10,000 23,000 2,000 Rent expense-Selling space Sales staff wages TV advertising expense 13,000 Sales commission expense Total selling expenses 48,000 General and administrative expenses 700 Office supplies expense Insurance expense 1,300 32,500 500 Office salaries expense Depreciation expense-Office copier Total general and administrative expenses 35,000 Total expenses 83,000 27,000 Other revenues, gains, expenses & losses 6,250 750 Gain on sale of equipment Interest revenue 7,000 Total other revenues, gains, expenses & losses 220,000 Net income
Fit-for-Life Foods reports the following income statement accounts for the year ended December 31 Gain on sale of equipment Office supplies expense Insurance expense Sales office salaries expense 6,250 Depreciation expense-office copier 500 Sales discounts 700 16,000 4,000 2,000 Sales returns and allowances 1,300 220,000 TV advertising expense Interest revenue 32,500 10,000 23,000 Sales commission expense 750 Rent expense-Selling space Sales staff wages Cost of goods sold 90,000 13,000 Prepare a multiple-step income statement. FIT-FOR-LIFE FOODS Income Statement For Year Ended December 31 220,000 Sales Less: Sales discounts Less: Sales returns and allowances 16,000 4,000 20,000 Net sales 200,000 Cost of goods sold 90,000 Gross profit 110,000 Expenses Selling expenses 10,000 23,000 2,000 Rent expense-Selling space Sales staff wages TV advertising expense 13,000 Sales commission expense Total selling expenses 48,000 General and administrative expenses 700 Office supplies expense Insurance expense 1,300 32,500 500 Office salaries expense Depreciation expense-Office copier Total general and administrative expenses 35,000 Total expenses 83,000 27,000 Other revenues, gains, expenses & losses 6,250 750 Gain on sale of equipment Interest revenue 7,000 Total other revenues, gains, expenses & losses 220,000 Net income
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 2E: Cost of Goods Sold and Income Statement Schuch Company presents you with the following account...
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