Income Statement Smith Company

Income Statement Smith Company

Part A

Smith Company

Income Statement for the year ended 31st December, 2012

 

 

 

 

$

$

Revenues

406,000

Less: Cost of Goods Sold (234,000-45,500)

(188,500)

Gross Profit

217,500

Less: Operating Expenses

 

Depreciation Expense

24,350

 

Insurance

1,400

 

Marketing

4,500

 

Property Tax

8,900

 

Rent

18,000

 

Salaries

67,500

 

Utilities

6,700

 

Total Operating Expenses

(131350)

Net Income

86,150

Less: Dividends (Balancing Figure)

(56,600)

Retained Earnings Carried Forward

 

29,550

Part B

The adjustments related to the purchase of the goods by the customer on an interest basis would be treated on a sale or return basis. The amount of $45,500, which is the actual worth of the goods sold, will be included in the balance sheet in the current assets section because the sale has not yet been made and the revenue has not actually been ...