Right Angle Manufacturing Company | ||
Answer a | ||
Single Step- Income Statement for the year ended December 31. | ||
Particulars | Amount $ | Amount $ |
Revenues | ||
Sales | 230,000.00 | |
Dividend Income | 200.00 | |
Interest Income | 680.00 | |
Gain on disposal of plant assets | 1,000.00 | |
Unrealized Gain on trading securities | 4,000.00 | |
Total Revenues | 235,880.00 | |
Cost of goods sold | 75,000.00 | |
Gross Profit | 160,880.00 | |
Expenses | ||
Selling expense | 1,450.00 | |
Sales Salaries Expense | 145.00 | |
Advertising Expense | 3,400.00 | |
Depreciation Expense- General | 2,350.00 | |
Amortization Expense-General | 3,000.00 | |
Office Salaries Expense | 1,890.00 | |
Office Supplies Expense | 1,250.00 | |
Systems Consulting Fees- General | 670.00 | |
Accounting & Legal Fees- Administrative | 575.00 | |
Interest expense | 890.00 | |
Loss on asset impairment | 900.00 | |
Loss on Discontinued Operations before tax | 250.00 | |
Total Expense | 16,770.00 | |
Income before tax | 144,110.00 | |
Tax expense | 57,644.00 | |
Net Income | 86,466.00 | |
Other Comprehensive Income | Amount $ | |
Unrealized Gain on Available for sale Bonds | 780.00 | |
Other Comprehensive Income | 780.00 |
Answer b | ||
Multi Step- Income Statement for the year ended December 31. | ||
Particulars | Amount $ | Amount $ |
Sales Revenue | 230,000.00 | |
Less: returns and allowances | - | |
Net Sales | 230,000.00 | |
Cost of goods sold | 75,000.00 | |
Gross Profit | 155,000.00 | |
Selling expense | 1,450.00 | |
Sales Salaries Expense | 145.00 | |
Advertising Expense | 3,400.00 | |
Depreciation Expense- General | 2,350.00 | |
Amortization Expense-General | 3,000.00 | |
Office Salaries Expense | 1,890.00 | |
Office Supplies Expense | 1,250.00 | |
Systems Consulting Fees- General | 670.00 | |
Accounting & Legal Fees- Administrative | 575.00 | |
Operating Expense | 14,730.00 | |
Operating Income | 140,270.00 | |
Dividend Income | 200.00 | |
Interest Income | 680.00 | |
Gain on disposal of plant assets | 1,000.00 | |
Unrealized Gain on trading securities | 4,000.00 | |
Loss on asset impairment | (900.00) | |
Interest expense | (890.00) | |
Other expense and income | 4,090.00 | |
Income before tax | 144,360.00 | |
Tax expense | 57,744.00 | |
Income from continuing operations | 86,616.00 | |
Loss on Discontinued Operations before tax | (250.00) | |
Tax at 40% | (100.00) | |
Loss on Discontinued Operations after tax | (150.00) | |
Net Income | 86,466.00 | |
Other Comprehensive Income | Amount $ | |
Unrealized Gain on Available for sale Bonds | 780.00 | |
Other Comprehensive Income | 780.00 |
Answer c | ||
Schedules for Multi Step- Income Statement | ||
Operating Expense | ||
Selling expense | 1,450.00 | |
Sales Salaries Expense | 145.00 | |
Advertising Expense | 3,400.00 | |
Depreciation Expense- General | 2,350.00 | |
Amortization Expense-General | 3,000.00 | |
Office Salaries Expense | 1,890.00 | |
Office Supplies Expense | 1,250.00 | |
Systems Consulting Fees- General | 670.00 | |
Accounting & Legal Fees- Administrative | 575.00 | |
Operating Expense | 14,730.00 | |
Other expense and income | ||
Dividend Income | 200.00 | |
Interest Income | 680.00 | |
Gain on disposal of plant assets | 1,000.00 | |
Unrealized Gain on trading securities | 4,000.00 | |
Loss on asset impairment | (900.00) | |
Interest expense | (890.00) | |
Other expense and income | 4,090.00 | |
Loss on Discontinued Operations after tax | ||
Loss on Discontinued Operations before tax | (250.00) | |
Tax at 40% | (100.00) | |
Loss on Discontinued Operations after tax | (150.00) |
Condensed Multi Step- Income Statement for the year ended December 31. | |
Particulars | Amount $ |
Sales Revenue | 230,000.00 |
Less: returns and allowances | - |
Net Sales | 230,000.00 |
Cost of goods sold | 75,000.00 |
Gross Profit | 155,000.00 |
Less: Operating Expense | 14,730.00 |
Operating Income | 140,270.00 |
Add: Other expense and income | 4,090.00 |
Income before tax | 144,360.00 |
Tax expense | 57,744.00 |
Income from continuing operations | 86,616.00 |
Loss on Discontinued Operations after tax | (150.00) |
Net Income | 86,466.00 |
Other Comprehensive Income | Amount $ |
Unrealized Gain on Available for sale Bonds | 780.00 |
Other Comprehensive Income | 780.00 |
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