Question

Pandora Corporation operates several factories in the Midwest that manufacture consumer electronics. The December 31, 2018, year end trial balance contained the following income statement items Account Title Sales revenue Interest revenue Loss on sale of investments Cost of goods sold Selling expenses General and administrative expenses Interest expense Research and development expense Income tax expense Debits Credits 12,700,000 52,000 102,000 6,220,000 622,000 1,540,000 42,000 1,220,000 902,000

Answer 1

pandora corporation  

income statement for the year end dec 31 ,2018

sales revenue	$12,700,000
interest revenue	52,000
total operating revenue		$12,752,000
less operating expenses
cost of goods sold	$220,000
selling expenses	622,000
general and administration expenses	1,540,000
interest expense	42,000
research and development expense	1,220,000
income tax expense	902,000	$4,546,000
net operating income		$8,206,000