Question

Presented below is information for Carla Vista Co. for the month of January 2017. Cost of goods sold $220,100 Rent expense $33,000 Freight-out 9,500 Sales discounts 9,100 Insurance expense 13,400 Sales returns and allowances 20,000 Salaries and wages expense 63,100 Sales revenue 399,500 Income tax expense 5,000 Other comprehensive income (net of $400 tax) 2,000 . Prepare an income statement using the multi-step format.

Answer 1

Answer:

Explanation:

The income statement is that statement which reflects gains & income and expenditure & losses for a particular year

A multi step format of income statement show a classification of sales and expenses.

Like to compute net sales, we deduct sales discount & sales return and allowances from sales revenue

like this, there are various expenses such as administrative expenses, selling expenses which come under operating expenses.

Administrative expenses includes rent and sales & wages expenses. whereas, selling expenses includes freight out charges.

The insurance expenses is come when these all expenses are recorded.

The preparation of income statement using the multi-step format is given under attachment sheet.