Question

Fit-for-Life Foods reports the following income statement accounts for the year ended December 31. Gain on sale of equipment $ 6,290 Depreciation expense—Office copier $ 550 Office supplies expense 770 Sales discounts 15,800 Insurance expense 1,250 Sales returns and allowances 4,000 Sales 219,000 TV advertising expense 4,000 Office salaries expense 31,200 Interest revenue 730 Rent expense—Selling space 10,300 Cost of goods sold 91,000 Sales staff wages 22,100 Sales commission expense 14,000 Prepare a multiple-step income statement.

Answer 1

Answer:

Operating INCOME $ 31,050

Explanation:

Income Statement 2020

Sales $ 219,000

Sales Discount -$ 15,800

Sales returns and allowances -$ 4,000

Cost of goods sold -$ 91,000

Gross PROFIT $ 108,200

TV advertising expense -$ 4,000

Office supplies expense -$ 0,770

Depreciation expense—Office copier -$ 0,550

Office salaries expense -$ 31,200

Rent expense—Selling space  -$ 10,300

Sales commission expense -$ 14,000

Sales staff wages -$ 22,100

Operating EXPENSES -$ 82,920

Operating INCOME $ 25,280

Insurance Expenses -$ 1,250

Interest revenue  $ 0,730

Gain on Sale of Equipment $ 6,290

NonOperating EXPENSES $ 5,770

Operating INCOME $ 31,050

Answer 2

Total Profit-Loss = Debit-Credit = $ 396,120 - $ 277,890 = $ 118,230

Sales of $ 219,000 (D)

Sales Discount - $ 15,800 (C)

Sales returns and allowances - $ 4,000 (C)

Cost of goods sold - $ 91,000 (C)

Gross PROFIT $ 108,200 (D)

TV advertising expense - $ 4,000 (C)

Office supplies expense - $ 0,770 (C)

Depreciation expense - Office copier - $ 0.550 (C)

Office salaries expense - $ 31,200 (C)

Rent expense - Selling space - $ 10,300 (C)

Sales commission expense - $ 14,000 (C)

Sales staff wages - $ 22,100 (C)

Operating EXPENSES - $ 82,920 (C)

Operating INCOME $ 25,280 (D)

Insurance Expenses - $ 1,250 (C)

Interest revenue of $ 0,730 (D)

Gain on Sale of Equipment $ 6,290 (D)

NonOperating EXPENSES $ 5,770 (D)

Operating INCOME $ 31,050 (D)

Further Explanation

In accounting, gross profit is sales profit is the difference between income and the cost to make a product or service before deducting overhead costs, salaries, taxes, and interest payments. Note that this is different from operating income (earnings before interest and taxes).

Net sales are calculated as follows:

Net sales = gross sales - sales returns and sales discounts

Profit, profit, or profit can be defined in two ways, the first Profit in pure economics is defined as an increase in the wealth of an investor as a result of capital investors, after deducting the costs associated with the investment (including in it, opportunity costs). Meanwhile, profit in accounting is defined as the difference between the sales price and the cost of production.

Profit is the fire element of most concern to users because profit numbers are expected to be rich enough to represent the company's overall performance. However, accounting theory has not yet achieved stability in the meaning and measurement of earnings. Therefore, in contrast to other elements of the financial statement water, the discussion of earnings includes three levels, namely: semantic, syntactic, and pragmatic.

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Sales Profit  https://brainly.com/question/13312465

Profit-Loss  https://brainly.com/question/13312465

Details

Grade: College

Subject: Business

Keyword: sales, profit, loss