The following income statement was prepared by an office clerk hired for July. As the accounting supervisor, you recognize that it is incorrect and prepare a corrected multi-step income statement.

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Demo Sales Income Statement For Month Ended July 31, 2020 $562,140 Sales. Accounts receivable. 37,000 Unearned sales. 18,000 $617,140 Net sales. Operating expenses: Accumulated depreciation, equipment. Advertising expense. Cost of goods sold Depreciation expense, equipment. $ 30,000 14,000 394,000 3,000 2,500 Insurance expense 1,700 250 Interest expense Interest payable. Jen Conway, withdrawals Office supplies.. Prepaid insurance. Prepaid rent.. Rent expense. 14,000 9,000 14,000 25,000 5,000 Salaries payable. Sales discounts.. 175,000 2,800 690,250 $ 73,110 Loss.