The Following Single-Step Income Statement for Balm Butters and Jellies $\quad$

question 83

Essay

The following single-step income statement for Balm Butters and Jellies needs to be converted into a multiple-step income statement for the year ended December 31,2012.
$\quad$$\quad$$\quad$$\text { Balm Butters and Jellies }$
$\quad$$\quad$$\quad$$\quad$$\text { Income Statement }$
$\text { For the year ended December } 31,2012$

$\begin{array}{lr} \text { Revenues: } \\ \quad \text { Sales } &\$ 840,000 \\ \quad\text { Interest Revenue} &\underline{3,000} \\&\$ 843,000\\\text { Expenses: }\\\quad\text { Cost of Goods Sold } & 434,800 \\\quad\text { Depreciation Expense } & 4,200 \\\quad\text { Income tax Expense } & 59,300 \\\quad\text { Insurance Expense } & 8,100 \\\quad\text { Interest Expense } & 3,700 \\\quad\text { Rent Expense } & 14,800 \\\quad\text { Wage Expense } & \underline{103,700} \\\quad\text { Total Expenses: } & \underline{628,600} \\\quad\text { Net Income } & \underline{\underline{\$ 214,400}}\end{array}$

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Definitions:

Defense

A legal strategy or argument used to justify the actions or refute the claims made in a lawsuit or prosecution.

Tradition

The transmission of customs, beliefs, or symbols from one generation to another, often maintaining continuity in a culture or society.

Custom

Established practices or behaviors that are accepted and expected within a specific culture or community.

Historical School

A school of jurisprudence that uses traditions as the model for future laws and behavior. Also called tradition or custom.