DRILL 2

The following are accounts taken from the books of Wei Long Trading for the year ended
December 31, 2017. Complete the income statement based on the given facts.

Sales P 450,000
Purchases 284,000
Inventory, Jan. 1 80,000
Sales Returns and Allowances 18,000
Sales Discount 12,000
Purchase Returns and Allowances 14,000
Purchase Discount 12,000
Freight-in 6,000
Inventory, Dec. 31 88,000
Advertising Expense 18,000
Sales Salaries 74,000
Freight-out 14,200
Utilities Expense – Store 2,800
Store Supplies 6,000
Office Salaries 22,000
Utilities Expense – Office 4,800
Office Supplies 2,400
Doubtful Accounts Expense 7,200
Dividends Income’ 50,000
Rent Income 40,000
Interest Expense 16,000
Discount Lost 1,600

Prepare the Multiple Step Income Statement