Fit-for-Life Foods reports the following income statement accounts for the year ended December 31. $ 6,250 Depreciation expense-Office copier 700 Sales discounts Gain on sale of equipment Office supplies expense Insurance expense Sales $ 500 16,000 4,000 2,000 1,300 Sales returns and allowances Office salaries expense Rent expense-Selling space Sales salaries expense 750 90,000 13,000 Prepare a multiple-step income statement. 220,000 TV advertising expense 32,500 Interest revenue 10,000 Cost of goods sold 23,000 Sales commission expense

Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows fro…

A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the …

Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It…

Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expect…