Question

Note: Problems 1-4 relate to the trial balance below. Marcell Sports Inc. Acct 311 - Quiz 3 of 6 - Trial Balance Credit Debit 140,000 475,000 $ 28,225 50,000 17,000 365,000 1,385,000 265,000 1,500,000 550,000 1,325,000 Cash Accounts Receivable Allowance for Doubtful Accounts Notes Receivable Supplies Inventory, 1/1/17 Equipment Accumulated Deperciation - Equipment Building Accumulated Deperciation - Building Land Accounts Payable Salaries and Wages Payable Notes Payable Mortgage Payable Common Stock, Par Value $0.05 APIC Retained Earnings Dividends Sales Revenue Sales Discounts Sales Returns and Allowances Purchases Purchase Discounts Freight In Selling Expenses Administrative Expenses Rent Revenue Income Tax Expense Gain on Sale of Land 365,000 65,000 1,250,000 1,325,000 125,000 475,000 424,000 230,000 3,565,000 155,000 175,000 1,750,225 60,000 65,000 355,000 455,000 55,000 285,000 $ 175,000 8,727,225 8,727,225 $ Physical Inventory 31-Dec $ 559,100

COGS = $1,561,125

Prepare the Income Statement

Answer 1

Income Statement :- Particulars Amount S Amounts Revenue 3,565,000 (155,000) (175,000) 3,235,000 1,750,225 (60,000) 1,690,225 65,000 1,755,225 365,000 2,120,225 559,100 Sales Revenue Less: Sales discounts Less: Sales returns and allowances Net sales revenue Less: Cost of goods sold Purchases Less: Purchase returns Net Purchases Add: Freight in Cost of goods manufactured Add: Finished goods inventory, beginning Cost of goods available for sale Less: Finished goods inventory, ending Cost of goods sold Gross Profit Less: Operating expenses Administrative expenses Selling expenses Total Operating expenses Operating income (A) Add/(Less): Non-Operating income/expenses) Rent Revenue Gain on sale of Land Total Non-Operating Income (B) Income before taxes (A+B) Less: Income tax expense Net Income 1,561,125 1,673,875 455,000 355,000 810,000 863,875 55,000 175,000 230,000 1,093,875 (285,000) 808,875