Question

can you help me build the income statement. thanks

Extra Homework From the following information for 2020 for Logan, Inc. prepare Financial Statements. As a December 31-year end. Accounts Payable Accounts Receivable Accumulated Depreciation Advertising Expense Building Cash Common Stock Cost of Goods Sold Equipment Interest Expense Inventory Depreciation Expense Notes Payable, Long-Term Patent Rent Expense Retained Earnings Sales Salaries Payable Salary Expense Tax Expense Taxes Payable Utilities Expense $200,000 80,000 46,000 19,000 300,000 108,000 300,000 500,000 140,000 5,000 118,000 28,000 10,000 50,000 75,000 171.000 825,000 60,000 100,000 18,000 9,000 40,000 Logan, Inc. issued 200 shares of common stock on June 30, 2020. There were 800 shares of common stock outstanding at the end of 2019 (last year). The company declared and paid a $10.000 dividend during 2020. The beginning Common Stock was $240,000 and the beginning Retained Earnings was $141,000.

Answer 1

Income statement

sales	825,000
Cost of goods sold	-500,000
Gross profit	325,000
Operating expenses :
Advertising expense	-19,000
Depreciation expense	-28,000
rent expense	-75,000
Salary expense	-100,000
Utilities expense	-40,000
Operating profit	63,000
Other expenses
Interest expense	-5,000
Profit before tax	58,000
Tax expense	-18,000
Net income	$40,000
Earning per share (Net income/Average number of common shares outstanding) (40,000/900)	$44.44

Average number of common shares = Number of shares outstanding at the beginning of year + Number of shares issued during 2020 x 6/12

= 800 + 200 x 6/12

= 800 + 100

= 900

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