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ct.html?isRege true&returnUrlhttps;%3A%2F%2 Help Required information The following information applies to the questions displayed below. The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company. $ 675,480 233,725 56,875 8,425 63,000 925,000 22,000 26,100 76,800 35,400 4,462,50o 392,560 s 28,750 Direct labor 7,250 Income taxes expense tion expense-office equipment ling equipment iation expense-Factory equipment 8,600 Indirect labor 33,550 Miscellaneous production costs 102,600 office salaries expense Factory supervision 7,350 Raw materials purchases 33,000 Rent expense-Office space Factory utilities Rent expense-Selling space r 31, 2016 December 31, 2017 166,850 Rent expense-Factory building Raw materials, 182,000 Maintenance expense-Factory equipment r 31, 2016 r 31, 2017 15,700 Sales 19,380 Sales salaries expense Finished goods, December 31, 2016 Pinished goods, December 31, 2017 167,350 136,490 . Prepare the company's 2017 income statement that reports separate categorids for (a) selling expenses and (b) general and dministrative expenses.Explanation / Answer
-----------------------------------LEONE COMPANY-----------------------------------
-----------------------------------Income Statement-----------------------------------
-------------------For the year ended December 31st 2017--------------------
Sales
$ 4,462,500.00
Cost of Goods Sold
Finished Goods Inventory
$ 167,350.00
Cost of goods Manufactured
$ 925,000.00
Goods Avalable for sale
$ 1,092,350.00
Less: Finished Goods Inventory
$ 136,490.00
Cost of Goods Sold
$ 955,860.00
Gross Profit from Sales
$ 3,506,640.00
Operating Expenses
Selling Expenses
Advertisement Expenses
$ 28,750.00
Depreciation-Selling Equipment
$ 8,600.00
Rent-Selling Space
$ 26,100.00
Sales Salaries expenses
$ 392,560.00
Total selling Expenses
$ 456,010.00
General And Administrative Expenses
Depreciation-Office Equipment
$ 7,250.00
Office Salaries Expenses
$ 63,000.00
Rent Expenses-Office Space
$ 22,000.00
Work in progress dec 31st 2016
$ 15,700.00
Total General and Administrative Expenses
$ 107,950.00
Total Operating expenses
$ 563,960.00
Income Before Taxes
$ 2,942,680.00
Income Taxes Expenses
$ 233,725.00
Net Income
$ 2,708,955.00
-----------------------------------LEONE COMPANY-----------------------------------
-----------------------------------Income Statement-----------------------------------
-------------------For the year ended December 31st 2017--------------------
Sales
$ 4,462,500.00
Cost of Goods Sold
Finished Goods Inventory
$ 167,350.00
Cost of goods Manufactured
$ 925,000.00
Goods Avalable for sale
$ 1,092,350.00
Less: Finished Goods Inventory
$ 136,490.00
Cost of Goods Sold
$ 955,860.00
Gross Profit from Sales
$ 3,506,640.00
Operating Expenses
Selling Expenses
Advertisement Expenses
$ 28,750.00
Depreciation-Selling Equipment
$ 8,600.00
Rent-Selling Space
$ 26,100.00
Sales Salaries expenses
$ 392,560.00
Total selling Expenses
$ 456,010.00
General And Administrative Expenses
Depreciation-Office Equipment
$ 7,250.00
Office Salaries Expenses
$ 63,000.00
Rent Expenses-Office Space
$ 22,000.00
Work in progress dec 31st 2016
$ 15,700.00
Total General and Administrative Expenses
$ 107,950.00
Total Operating expenses
$ 563,960.00
Income Before Taxes
$ 2,942,680.00
Income Taxes Expenses
$ 233,725.00
Net Income
$ 2,708,955.00
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