PB6-4 Preparing a Multistep Income Statement with Sales Discounts and Sa LO 6-5
ID: 2548538 • Letter: P
Question
PB6-4 Preparing a Multistep Income Statement with Sales Discounts and Sa LO 6-5 The following information applies to the questions displayed belowJ Emily's Greenhouse Corporation is a local greenhouse organized 10 years ago as a corporation. The bookkeeper prepared the following statement (assume that all amounts are correct, but note the incorrect terminology and format): EMILY'S GREENHOUSE CORPORATION Profit and Loss December 31 Credit $903,000 Debit Sales Cost of Goods Sold Sales Returns and Allowances Sales Discounts Salaries and Wages Expense Office Expense Travel Expenses Income Tax Expense Net Profit $ 414,000 21,700 22,200 133,000 40,000 11,800 78,090 182,210 Totals $903,000 $903,000Explanation / Answer
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gross Profit =gross Profit/Net Sales =445100/859100 =51.81%
Emilys Green House Corporation Income Statement Sales Revenue 903000 Less Return & Allowance 21700 Less Discount 22200 Net Sales 859100 Less Cost of Goods sold 414000 Gross Profit 445100 Operating Expense Office expense 40000 Travel Expense 11800 Salaries and wages Expense 133000 Income From Operation 260300 Income Tax Expense 78090 Net Income 182210Related Questions
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