Presented below is information for carla vista co. for the month of january 2017. cost of goods sold $220,100 rent expense $33,000 freight-out 9,500 sales discounts 9,100 insurance expense 13,400 sales returns and allowances 20,000 salaries and wages expense 63,100 sales revenue 399,500 income tax expense 5,000 other comprehensive income (net of $400 tax) 2,000 . prepare an income statement using the multi-step format.

Explanation:

The income statement is that statement which reflects gains & income and expenditure & losses for a particular year

A multi step format of income statement show a classification of sales and expenses.

Like to compute net sales, we deduct sales discount & sales return and allowances from sales revenue

like this, there are various expenses such as administrative expenses, selling expenses which come under operating expenses.

Administrative expenses includes rent and sales & wages expenses. whereas, selling expenses includes freight out charges.

The insurance expenses is come when these all expenses are recorded.

The preparation of income statement using the multi-step format is given under attachment sheet.