as a supporting document for requirements 2 and 3 prepare a separate schedule for fa 563046

Cost of Goods Sold and Income Statement The Fanta Company presents you with the following account balances taken from its December 31, 2007 adjusted trial balance:

Inventory, January 1, 2007

$43,000

Selling expenses

35,000

Extraordinary gain (pretax)

23,000

Purchases

100,000

Sales

250,000

General and administrative expenses

22,000

Purchases returns

$3,500

Interest expense

4,000

Sales discounts taken

2,000

Gain on sale of property (pretax)

7,000

Freight in

5,000

Additional data:

1. A physical count reveals an ending inventory of $22,500 on December 31, 2007.

2. Twenty five thousand shares of common stock have been outstanding the entire year.

3. The income tax rate is 30% on all items of income.

Required

1. As a supporting document for Requirements 2 and 3, prepare a separate schedule for Fanta Company’s cost of goods sold.

2. Prepare a 2007 multiple step income statement.

3. Prepare a 2007 single step income statement.

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