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The following is information from Crystal Company\'s adjusted trial balance at D

ID: 2411172 • Letter: T

Question

The following is information from Crystal Company's adjusted trial balance at December 31, 2017: Debit $77,000 102,000 68,000 461,400 Credit Cash Notes receivable Merchandise inventory Equipment Accumulated depreciation- equipment Unearned revenue Notes payable L. Crystal, capital L. Crystal, drawings Interest revenue Rent revenue Sales Advertising expense Cost of goods sold Depreciation expense Freight out Insurance expense Interest expense Salaries expense Sales discounts Sales returns and allowances $138,420 7,400 218,420 233,000 156,000 11,000 23,000 1,970,000 53,000 850,000 46,140 25,000 15,000 10,300 670,000 9,400 58,000 $2,601,240 $2,601,240 Prepare a single-step income statement. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45 CRYSTAL COMPANY

Explanation / Answer

Answer

Revenues:

Sales revenue

$ 19,70,000.00

Sales return & allowances

$     (58,000.00)

Sales Discounts

$       (9,400.00)

Net Sales

$          19,02,600.00

Interest Revenue

$                11,000.00

Rent revenue

$                23,000.00

Total revenues (A)

$          19,36,600.00

Expenses:

Cost of Goods Sold

$    8,50,000.00

Advertising Expenses

$       53,000.00

Depreciation expense

$       46,140.00

Freight Out

$       25,000.00

Insurance expense

$       15,000.00

Interest expense

$       10,300.00

Salaries expense

$    6,70,000.00

Total Expenses (B)

$          16,69,440.00

Net Income (A – B)

$            2,67,160.00

Revenues:

Sales revenue

$ 19,70,000.00

Sales return & allowances

$     (58,000.00)

Sales Discounts

$       (9,400.00)

Net Sales

$          19,02,600.00

Interest Revenue

$                11,000.00

Rent revenue

$                23,000.00

Total revenues (A)

$          19,36,600.00

Expenses:

Cost of Goods Sold

$    8,50,000.00

Advertising Expenses

$       53,000.00

Depreciation expense

$       46,140.00

Freight Out

$       25,000.00

Insurance expense

$       15,000.00

Interest expense

$       10,300.00

Salaries expense

$    6,70,000.00

Total Expenses (B)

$          16,69,440.00

Net Income (A – B)

$            2,67,160.00