The adjusted trial balance columns of Falcetto Company”s worksheet for the year ended December 31, 2014, are as follows.
|
Cash |
Debit |
Accumulated Depreciation |
Credit |
|
14,500 |
|||
|
Accounts Receivable |
11,100 |
Equipment |
18,000 |
|
Inventory |
29,000 |
Notes Payable |
25,000 |
|
Prepaid Insurance |
2,500 |
Accounts Payable |
10,600 |
|
Equipment |
95,000 |
Owner”s Capital |
81,000 |
|
Owner”s Drawings |
12,000 |
Sales Revenue |
536,800 |
|
Sales Returns and Allowances |
6,700 |
Interest Revenue |
2,500 |
|
Sales Discounts |
5,000 |
673,900 |
|
|
Cost of Goods Sold |
363,400 |
||
|
Freight-Out |
7,600 |
||
|
Advertising Expense |
12,000 |
||
|
Salaries and Wages Expense |
56,000 |
||
|
Utilities Expense |
18,000 |
||
|
Rent Expense |
24,000 |
||
|
Depreciation Expense |
9,000 |
||
|
Insurance Expense |
4,500 |
||
|
Interest Expense |
3,600 |
||
|
673,900 |
Remember that the key components of the income statement are net sales, cost of goods sold, gross profit, total operating expenses, and net income (loss). Report these components in the right-hand column of the income statement.
Put nonoperating items after income from operations.
Instructions
Prepare a multiple-step income statement for Falcetto Company.