Question

On June 12, Carpenter Printing printed $18,969 in magazines for the Pierre Company. The magazines were delivered on June 15, along with an invoice for $5,503 due July 15. Per the contract negotiated by the Pierre Company with Carpenter Printing, $4,850 will be invoiced in July and will be due August 15; the remainder will be invoiced in August and will be due September 15. On June 18, Cecil Advertising Agency signed a contract with Carpenter Printing to print advertisements, paying $27,977 in advance. $8,519 in advertisements are contracted to be printed in June and $32,535 in advertisements are contracted to be printed in July. On June 30, $11,189 of advertisements were printed and delivered to Cecil Advertising. On June 30, $2,054of the $15,880 in supplies remaining on May 31 have not been used.

Based on these transactions alone, what is the effect on the Net Income on the Income Statement on June 30?

Answer 1

solutions the net income on the income statement Effect on June 30 :- On Revenue. 18969 11189 30158 from pierre company from cecil Advertising Agency Total revenue Less& Expenses Supplies expense (15880-2054) Net income & 13826 16332 - since & 18969 in magasines is painted and delivered to pierre company on June 15, the entire amount will be recognized in June through the invoicing has been defferred. - In case of cecil dvestising agency $ 11189 of advertisements were printed and delivered on June 30. Hence, revenue for the same will be recognized in June. & The effect on the net income on the income statement on June 30 is $ 16332.