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Salaries and wages expenses $697,500 Loss on disposal of plant assets $125,250 C

ID: 2612092 • Letter: S

Question

Salaries and wages expenses                     $697,500

Loss on disposal of plant assets          $125,250

Cost of goods sold                                       1,480,500

Sales Revenue                                          3,315,000

Interest expense                                          106,500

Income Tax Expense                                37,500

Interest revenue                                             97,500

Sales discounts                                        240,000

Depreciation Expense                                465,000

Utilities expense                                       165,000

I

This is the income statement for the year ended December 31, 2017, Sandhill Co. reported the following condensed data.

Prepare a multiple-step income statement. (List other revenues before other expenses.)

Salaries and wages expenses                     $697,500

Loss on disposal of plant assets          $125,250

Cost of goods sold                                       1,480,500

Sales Revenue                                          3,315,000

Interest expense                                          106,500

Income Tax Expense                                37,500

Interest revenue                                             97,500

Sales discounts                                        240,000

Depreciation Expense                                465,000

Utilities expense                                       165,000

Explanation / Answer

Prepare a multiple-step income statement.

Sales 3315000 Less: Sales discount (240000) Net Sales 3075000 Less: Cost of goods sold (1480500) Gross profit 1594500 Less: Operating expenses Salaries and wages expenses   (697500) Depreciation Expense (465000) Utilities expense (165000) Total operating expenses (1327500) Income from operation 267000 Non operating and other Other revenue Interest revenue 97500 Other expenses Interest expenses (106500) Loss on disposal of plant assets   (125250) (231750) Income before tax 132750 Less: Income tax (37500) Net income 95250
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