The following is a listing of some of the balance sheet accounts and all of the income statement accounts for Mulberry Street Sportswear as they appear on the 12/31/14 adjusted trial balance.
| Accounts Payable |
$10,000 |
| Accounts Receivable |
11,000 |
| Advertising Expense |
12,000 |
| Cost of Goods Sold |
89,000 |
| Delivery Expense |
6,000 |
| Insurance Expense |
1,000 |
| Interest Expense |
2,000 |
| Merchandise Inventory |
20,000 |
| Rent Expense |
12,000 |
| Sales |
160,000 |
| Sales Discounts |
11,000 |
| Sales Returns and Allowances |
19,000 |
| Unearned Revenue |
2,000 |
Required:
a. Prepare a multi-step income statement for 2014 for Mulberry Street Sportswear.
MULBERRY STREET SPORTSWEAR
Income Statement
For the Year Ended 12/31/14
Operating Expenses: