need helpthanks Instructions Generalized Statement Instructi

need help.thanks

Instructions Generalized Statement Instructions Multiple-Step Income Statement Use the following information to prepare a multiple-step income statement, including the revenue section and the cost of goods sold section, for Sauter Office Supplies for the year ended December 31, 20- Sales Sales Returns and Allowances Sales Discounts Interest Revenue $156,545 2,013 4,168 426 Merchandise Inventory, January 1, 20 27,265 111,668 5,228 2,690 Purchases Purchases Returns and Allowances Purchases Discounts NG 833

Solution

SAUTER OFFICE SUPPLIES Income Statement For the Year ended December 31,20-- Revenue from Sales Sales (Gross) $156,545 Sales Return and allowances -$2,013 Sales Discounts -$4,168 -$6,181 Sales (net) $150,364 Cost of goods sold Purchases $111,668 Merchandise Inventory ,Jan.1,20-- $27,265 Purchase returns and allowances -$5,228 Purchase discounts -$2,690 -$7,918 Merchandise Inventory ,Dec.31,20-- -$33,000 -$13,653 Cost of goods sold $98,015 Gross margin $52,349 Operating Expenses Freight in -$870 Wages Expense -$27,604 Supplies Expense -$776 Phone Expense -$887 Utilities Expense -$7,980 Insurance Expense -$1,296 Depreciation expense - Equipment -$3,815 Mise.expense -$594 Total Operating Expenses -$43,822 Operating Income $8,527 Other Revenues Interest Revenue $426 Other Expenses Interest Expense -$4,687 -$4,261 Net Income $4,266