Question

Save-the-Earth Co. reports the following income statement accounts for the year ended December 31. $ Sales discounts office salaries expense Rent expense-office space Advertising expense Sales returns and allowances office supplies expense Cost of goods sold Sales Insurance expense Sales staff salaries 870 3,200 2,700 740 370 740 11,400 44,000 2,200 3,700 (8 02:25:04 Print Required: Prepare a multiple-step income statement for the year ended December 31. * Save-the-Earth Co. Income Statement For Year Ended December 31 Expenses Selling expenses Total selling expenses General and administrative expenses Total general and administrative expenses Total expenses

Answer 1

Save-the-Earth Co
Income Statement
For the year ended December 31
Particulars	Amount ($)	Amount ($)
Sales	44,000
Less: Sales discounts	870
Less: Sales returns & Allowances	370
Net Sales		42,760
Less: Cost of goods sold		11,400
Gross Profit		31,360
EXPENSES
SELLING EXPENSES
Rent Expenses	2,700
Sales Staff Salaries	3,700
Advertising Expenses	740
Total Selling Expenses	7,140
GENERAL & ADMINISTRATIVE EXPENSES
Office Supplies Expenses	740
Insurance Expenses	2,200
Office Salaries Expenses	3,200
Total General & Administrative Expenses	6,140
Total Expenses		13,280
Net Income		18,080