The following selected information is for Okanagan Company for the year ended January 31, 2014:

Instructions
(a) Prepare a multiple-step income statement.
(b) Prepare closing entries.

Transcribed Image Text:

Freight in Freight out Insurance expense Interest expense Merchandise inventory, beginning Merchandise inventory, ending O. G. Pogo, capital O. G. Pogo, drawings Purchases $ 6,500 7,000 12,000 6,000 61,000 42,000 105,000 42,000 210,000 Purchase discounts Purchase returns and allowances Rent expense Salaries expense Salaries payable Sales Sales discounts Sales returns and allowances Unearned sales revenue 12,000 16,000 61,000 325,000 14,000