The adjusted trial balance of Pratt Company contained the following information:

Income Statement

Debit

Credit

Sales

RM550,000

Sales Returns and Allowances

RM 20,000

Sales Discounts

7,000

Cost of Goods Sold

366,000

Freight out

2,000

Advertising Expense

15,000

Interest Expense

18,000

Store Salaries Expense

50,000

Utilities Expense

18,000

Depreciation Expense

7,000

Interest Revenue

25,000

Instructions:

Use the above information to prepare a multiple step income statement for the year ended December 31, 2007.