1- Net sales consist of: sales $911,000, less freight-out on merchandise sold $33,000,
and sales retu’ns and allowances $28,000-

2- Other revenues consist of sales discounts $18,000 and rent revenue $4,000-

3. Selling expenses consist of salespersons’ salaries $80,000, depreciation on
equipment $10,000, advertising $13,000, and sales commissions $6,000- The
commissions represent commissions paid- At December 21, $3,000 of commissions
have been earned by salespersons but have not been paid- All compensation should
be recorded as Salaries and Wages Expense-

4- Administrative expenses consist of office salaries $47,000, dividends $18,000,
utilities $12,000, interest expense $2,000, and rent expense $24,000, which includes
prepayments totaling $6,000 for the first quarter of 2018-

5- Conclusion-

Prepare a detailed multi-step income statement with a brief explanation of 700 words-
Assume a 2596 tax rate-

Show you work on the Excel® spreadsheet and submit with you explanation-