The following selected information is for Okanagan Company for the year ended January 31, 2017:

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 Purchase discounts Purchase returns and allowances Rent expense Salaries expense Salaries $12,000 16,000 61,000 325,000 61,000 42,000 105,000 Sales discounts Sales returns and allowances Unearned revenue 14,000 210,000