Question

Create an Income Statement with this data:

DR CR Cash 10С Accounts Receivable Short-Term Marketable Securities 15000 12000 Inventory Prepaid Rent Prepaid Insurance Long-Term Marketable Seaurities 25000 24000 12000 50Ссе Land Held for Future Use 10C0 Debt Service Fund Land in Use 120000 Buildings Accumulated Depreciation-Buildings Machinery and Equipment Accumulated Depreciation- Mach and Equip Copper Mine Accumulated Depletion-Copper Mine Franchise TЕССе 200000 250CCO 300CCO 75000 25000 Соруright Trademark 300C0 100се 75000 Patent Long-term Deferred Tax Asset Long-term Pension Asset Accounts Payable Income Taxes Payable Note Payable (due in 6 months) Interest Payable Mortgage Payable (1/20 due this year Note Payable (due in 2 years) 10СССО 17000 63000 5СССО 25000 400CCO 150000 Common Stock 10СССО Paid-in Capital in Excess of Par-Common Preferred Stocdk 30C000 5СССО Paid-in Capital in Excess of Par - Preferred Retained Earmings 10СССО 200000 Other Accumulated Comprehensive Income Treasury Stodk Sales Revenue 250CO TROCO Sales Discounts 50C0 Sales Expenses General Administrative Expenses 150CCO 250000 Cost of Goods Sold 20C000 Interest Reverue Dividend Reveruue Interest Expense Gain on Sale of Equipment Loss on Sale of Inwestments Discontinued Operations (net of tax) 20000 15000 22000 5000 150C0 2625000 Totals 2625000

Answer 1

Income Statement
For the Year Ended.........,20XX
Sales Revenue		$778,000
Less:Cost of Goods Sold		(200,000)
Gross Profit		$ 578,000
Less: Operating Expense
General Administrative Expense	250,000
Selling and Marketing Expense	155,000	$405,000
Operating Income		$173,000
Add/Less: Other Income/Expense
Interest Revenue	20,000
Dividend Revenue	15,000
Gain on Sale of Equipment	7,000
Interest Expense	(22,000)
Loss on Sale of Investment	(5000)	15,000
Income from continued operation		188,000
Loss from Discontinued operation (net of tax)		(15,000)
Net Income before tax		$173,000
Less: Tax @20%		(34,600)
Profit after tax		$138,600