Multiple-Step Income Statement and Profit Margin
The following income statement items, arranged in alphabetical order, are taken from the records of Osomo Enterprises for the current year:
Advertising expense$9,000 Rent expense—office$ 26,400Cost of goods sold150,000 Rent expense—salesperson’s car18,000Depreciation expense—computer4,500 Sales revenue350,000Dividend revenue2,700 Supplies expense—office1,300Income tax expense27,900 Utilities expense6,750Interest expense1,900 Wages expense—office45,600Assume that Osomo Enterprises classifies all operating expenses into two categories: (1) selling and (2) general and administrative.
Required:
- How to prepare multiple-step income statement for the current year.
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