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27) Freestone Company reports the following income statement accounts for the year ended December 31. Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. Categorize the following accounts as selling expenses: Sales Staff Salaries and Advertising Expense. Categorize the remaining expenses as general and administrative. Sales discounts office salaries expense $ 1,500 office supplies expense 4,000 Cost of goods sold 3,000 Sales Rent expense office space 1,000 Insurance expense 500 Sales staff salaries Advertising expense Sales returns and allowances $ 1,000 18,000 40,000 2,000 5,000

27) Freestone Company reports the following income statement accounts for the year ended December 31. Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. Categorize the following accounts as selling expenses: Sales Staff Salaries and Advertising Expense. Categorize the remaining expenses as general and administrative. Sales discounts office salaries expense $ 1,500 office supplies expense 4,000 Cost of goods sold 3,000 Sales Rent expense office space 1,000 Insurance expense 500 Sales staff salaries Advertising expense Sales returns and allowances $ 1,000 18,000 40,000 2,000 5,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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27) Freestone Company reports the following income statement accounts for the year ended December 31. Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. Categorize the following accounts as selling expenses: Sales Staff Salaries and Advertising Expense. Categorize the remaining expenses as general and administrative. Sales discounts office salaries expense $ 1,500 office supplies expense 4,000 Cost of goods sold 3,000 Sales Rent expense office space 1,000 500 Advertising expense Sales returns and allowances Insurance expense Sales staff salaries $ 1,000 18,000 40,000 2,000 5,000
Transcribed Image Text:27) Freestone Company reports the following income statement accounts for the year ended December 31. Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. Categorize the following accounts as selling expenses: Sales Staff Salaries and Advertising Expense. Categorize the remaining expenses as general and administrative. Sales discounts office salaries expense $ 1,500 office supplies expense 4,000 Cost of goods sold 3,000 Sales Rent expense office space 1,000 500 Advertising expense Sales returns and allowances Insurance expense Sales staff salaries $ 1,000 18,000 40,000 2,000 5,000
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