Question

Required information [The following information applies to the questions displayed below.] The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company Advertising expense Depreciation expense-office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used Factory utilities Inventories Raw materials, December 31, 2018 Raw materials, December 31, 2019 Work in process, December 31, 2018 Work in process, December 31, 2019 Finished goods, December 31, 2018 Finished goods, December 31, 2019 $ 27,300 Direct labor 8,800 Income taxes expense 11,000 Indirect labor 39,600 Miscellaneous production costs 122,200 Office salaries expense 7,700 Raw materials purchases 43,000 Rent expense-office space Rent expense-Selling space 159,900 Rent expense-Factory building 182,000 Maintenance expense-Factory equipment 18,100 Sales 24,600 Sales salaries expense 163,500 135,400 691,700 238,200 59,200 10,200 71,000 998,000 24,000 29,300 78,000 39,500 4,576, 100 390,700

Answer 1

Leone Company Income Statement For the year ended December 31, 2019
Sales			$ 4,576,100
Cost of Goods Sold
Finished Goods, December 31, 2018	$ 163,500
Cost of Goods Manufactured	2,060,500
Cost of Goods Available for Sale		$ 2,224,000
Less: Finished Goods, December 31, 2019		(135,400)
Cost of Goods Sold			2,088,600
Gross Profit			2,487,500
Operating Expenses
Selling Expenses
Advertising Expense	27,300
Sales Salaries Expense	390,700
Depreciation Expense: Selling Equipment	11,000
Rent Expense: Selling Space	29,300
Total Selling Expenses		458,300
General and Administrative Expenses
Office Salaries Expense	71,000
Rent Expense: Office Space	24,000
Depreciation Expense: Office Equipment	8,800
Total General and Administrative Expenses		103,800
Total Operating Expenses			562,100
Income Before Taxes			1,925,400
Income Tax Expense			238,200
Net Income			$ 1,687,200