Question

James Company Adjusted Trial Balance December 31, 2017 DEBIT 3,100 2,460 CREDIT 650 500 20 30 3,000 150 10,720 1,200 600 670 125 50 Cash Accounts Receivable Allowance for Doubtful Accounts Short term Note Receivable Interest Receivable Supplies Inventory Prepaid Expenses Equipment Accumulated Depreciation Copyrights Accounts Payable Interest Payable Unearned Revenue Long Term Note Payable Common Stock Paid-in-Capital In Excess of Par - CS Retained Earnings (1/1/17) Dividends Sales Sales Returns & Allowances Sales Discounts Cost of Goods Sold Bad debt expense Depreciation Expense Amortization Expense Wages Expense Rent Expense Office Expense Supplies Expense Selling Expense Interest Expense Interest Revenue Income Tax Expense Totals 1,400 6,600 400 3,160 1,000 41,400 40 60 21,550 30 770 90 8,000 1,500 80 260 870 200 135 760 55,790 55,790

Multi Step Income Statement

For the year ended December 31, 2017

(Be sure to include all the necessary headings, totals and subtotals as outlined in Chapter 5. You may not need to use all the lines provided. Note: The two columns below do not represent debit and credit balances like they do on a trial balance. On the Income Statement, use the right column for subtotals and totals.)

Answer 1

James Company
Income Statement
For the year ended December 31, 2017
Revenues
Sales	$   41,400
Less: Sales returns and allowances	$        (40)
Less: Sales discounts	$        (60)
Net sales		$   41,300
LessL Cost of goods sold		$   21,550
Gross profit		$   19,750
Less: Operating expenses
Baddebt expenses	$           30
Depreciation expense	$        770
Amortization expense	$           90
Wages expense	$     8,000
Rent expense	$     1,500
Office expense	$           80
Supplies expense	$        260
Selling expense	$        870
Total operating expense		$   11,600
income from operations		$     8,150
Non operating income and (expenses)
Interest revenue	$        135
Interest expenses	$      (200)
Total Non operating income and (expenses)		$        (65)
Income before income tax		$     8,085
Less: Income tax expense		$        760
Net income		$     7,325

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