Reference no: EM131615044
Assignment: Preparing a Multiple-Step Income Statement
Scenario: An inexperienced accountant prepared this condensed income statement for Simon Company, a retail firm that has been in business for a number of years.
SIMON COMPANY Income Statement For the Year Ended December 31, 2017
|
Revenues
|
|
Net sales
|
$850,000
|
Other revenues
|
22,000
|
|
872,000
|
Cost of goods sold
|
555,000
|
Gross profit
|
317,000
|
Operating expenses
|
|
Selling expenses
|
109,000
|
Administrative expenses
|
103,000
|
|
212,000
|
Net earnings
|
$105,000
|
As an experienced, knowledgeable accountant, you review the statement and determine the following facts:
1. Net sales consist of: sales $911,000, less freight-out on merchandise sold $33,000, and sales returns and allowances $28,000.
2. Other revenues consist of sales discounts $18,000 and rent revenue $4,000.
3. Selling expenses consist of salespersons' salaries $80,000, depreciation on equipment $10,000, advertising $13,000, and sales commissions $6,000. The commissions represent commissions paid. At December 21, $3,000 of commissions have been earned by salespersons but have not been paid. All compensation should be recorded as Salaries and Wages Expense.
4. Administrative expenses consist of office salaries $47,000, dividends $18,000, utilities $12,000, interest expense $2,000, and rent expense $24,000, which includes prepayments totaling $6,000 for the first quarter of 2018.
Prepare a detailed multi-step income statement with a brief explanation of 700 words. Assume a 25% tax rate.
Show your work on the Excel spreadsheet and submit with your explanation.
Emergent or re-emergent disease disease
: Why is TB an emergent or re-emergent disease disease? What factors contribute to the re-emergence?
|
Define theories of crime videos in cj criminology
: The Examining Theory document and select one of the following options to complete the assignment
|
Describe the model that you are using
: Your agency or institution has noted a negative trend in profitability for a diagnostic imaging cost center over the past 4 quarters.
|
Find the area vector of the oriented flat surface
: The triangle with vertices (0, 0, 0), (0, 2, 0), (0, 0, 3) oriented in the negative x direction.
|
Describe a detailed multi-step income statement
: Describe detailed multi-step income statement with brief explanation of 700 words. Assume a 25 percent tax rate. Excel spreadsheet and submit your explanation.
|
Import issue in the upcoming year
: Be a Communication Activist for one import issue in the upcoming year, what is the issue - Dr. Hartnett's Communication Activism concepts, theories and theses
|
Secretion during the menstrual cycle
: The release of FSH and LH from gonadotropes in the adenohypophysis is separately controlled by the same hypothalamic releasing hormone, GnRH.
|
Discuss what you believe motivates people to work
: Happy employees make for a successful organization. Discuss if you agree or disagree with this statement. Why or why not? Provide support for your position
|
Chemical modification to their structure
: What affect would this change have on the axons of these neurons?
|