Fit-for-Life Foods reports the following income statement accounts for the year ended December 31.

Gain on sale of equipment $ 6,250 Depreciation expensesOffice copier $ 500

Office supplies expense 700 Sales discounts 16,000

Insurance expense 1,300 Sales returns and allowances 4,000

Sales 220,000 TV advertising expense 2,000

Office salaries expense 32,500 Interest revenue 750

Rent expenses Selling space 10,000 Cost of goods sold 90,000

Sales staff wages 23,000 Sales commission expense 13,000

Prepare a multiple-step income statement.

Fit-for-Life Foods

Multi Step Income Statement for the year ended 31 Dec

$ $

Sales $220,000

Sales Discounts $16,000

Sales returns & Allowances $4,000 $20,000

Net Sales $200,000

Cost of Goods Sold $90,000

Gross Profits $110,000

Expenses

Selling Expenses:

Rent Expenses Selling Space $10,000

Sales Staff Wages $23,000

TV Advertising Expense $2,000

Sales Commission Expense $13,000

Total Selling expenses $48,000 ($48,000)

General & Administrative expenses:

Office Supplies expense $700

Insurance expense $1,300

Office Salaries Expenses $32,500

Depreciation expense $500

Office Copier

Total general and administrative $35,000 ($35,000)

expenses

Operating Income $27,000

Other Revenues, gains expense and losses:

Gain on Sale of Equipment $6,250

Interest Revenue $750

Total other revenues gains $7,000 ($7,000)

expenses and losses

Net Income $20,000