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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Transcribed Image Text: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.
Transcribed Image Text: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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education