Wright Company
Revenue
Net Sales 952,000
other revenue 16,000
968,000
Cost of goods sold 548,000
Gross profit 420,000
Operating expenses
Selling expenses 160,000
Administrative expenses 104,000
264,000
Net earnings $156,000
As an experienced, knowledgeable accountant, you review the statement and determine the following facts. 1. Net sales consist of sales $972,000, less freight out on merchandise sold $20,000. 2. Other revenues consist of sales discounts $12,000 and interest revenue $4,000. 3. Selling expenses consist of salespersons’ salaries $88,000; depreciation on equip ment $4,000; sales returns and allowances $46,000; advertising $12,000; and sales commissions $10,000. All compensation should be recorded as Salaries and Wages Expense. 4. Administrative expenses consist of office salaries $54,000; dividends $14,000; utili ties $13,000; interest expense $3,000; and rent expense $20,000, which includes prepayments totaling $2,000 for the first month of 2015. The utilities represent utilities paid. At December 31, utility expense of $3,000 has been incurred but not paid. Instructions Prepare a correct detailed multiple step income statement.
SHOW ALL WORK….SHOW ALL WORK thanks