Content Library Assesaments Communication Resources, of Contents Project Two ..

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Content Library Assesaments Communication Resources, of Contents Project Two .. Propect2 Fall 2017 Project2 Fall 2017 Question 1: Krupka, Inc. has the following data for the year ended December 31, 2017: Net sales . Discontinued operations loss Cost of goods sold. Interest expense Selling expenses Administrative expenses $270,000 20,000 165,000 3,000 15,000 35,000 ... Shares of capital stock outstanding, 10,000 Tax rate of 30% on all items Instructions Prepare a multiple-step income statement for Krupka Inc. for the year ended December 31, 2017 115 View as Text Send to Binder O Download -i Open mth doeReader

Explanation / Answer

Multistep Income statement for the year ended

Net sales $270000

Cost of goods sold ($165000)

Gross profit $105000

Selling expense ($15000)

Administrative expense ($35000)

Interest expense ($3000)

EBT $52000

Tax rate 30% ($15600)

Net income $36400

Discontinued operation loss $20000

Tax rate 30% ($6000) ($14000)

Net income $22400.

2.

Income Statement

Service revenue $351400

Utilities expense ($1320)

Advertisement expense ($1560)

Salaries and wages expense ($53040)

Depreciation expense ($80000)

Interest expense ($2400)

Net income $213080

Balance sheet

Equipment $70000

Accummulated depreciation ($10000)

Buildings $80400

Accummulated depreciation ($15000)

Assets Amount($) Liabilities Amount($) Cash $50000 Salaries and wages payable $900 Supplies $1860 Income taxes pyable $3000 Prepaid advertisement $5000 Interest payable $600 Accounts receivable $102000 Notes payable $34400

Equipment $70000

Accummulated depreciation ($10000)

$60000 Bonds payable $78000 Land $137320 Retained earnings $304680

Buildings $80400

Accummulated depreciation ($15000)

$65400 Total assets $421580 Total liabilities $421580

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