Cole\'s Cookiei Trial balance EE (Click the The company Cole\'s Cookie Company U
ID: 2438827 • Letter: C
Question
Cole's Cookiei Trial balance EE (Click the The company Cole's Cookie Company Unadjusted Trial Balance (Selected Accounts) For the Current Year Ended Requiremen Prepare a mu are typically Prepare Cole shown on a m Debit Credit Account Common Stock (no par): Beginning Balance Retained Earnings: Beginning Balance Accumulated Other Comprehensive Income: Beginning Balance Dividends Sales Interest Income Dividend Income Gain on Disposal of Plant Assets Unrealized Gain on Trading Securities Gain on Sale of Discontinued Operations-Before Tax Unrealized Gain on Available-for-Sale Bonds-Before Tax Cost of Goods Sold $ 472,000 1,600,000 55,000 67,000 2,400,000 4,600 3,800 92,000 31,000 66,000 5,300 Less: 610,000 Choose from Print Done 2
Explanation / Answer
Multiple-step Income statement:
Mulitiple-step income statement segregates Operating Income and Operating Expenses from Non-Operating Income and Non-Operating Expenses, gains and Losses.
Multiple -Step Income statement for the current year
Cole's Cookie Company
Statement of Net Income
For the current year ended
Note 1:
Unrealized gain on Available for sale bonds shall not be taken into income statement and instead it shall be presented in balance sheet under "Other comprehensive Income".
Note 2:
Dividend income is not an expense and morever it is an appropriation of income.
Cole's Cookie Company
Statement of Net Income
For the current year ended
$ $ Sales 2,400,000 Cost Of Goods Sold 610,000 Gross profit 1,790,000 Operating expenses General and Administrative expenses Office salaries expenses 75,000 Legal fees 8,200 Office supplies expenses 72,000 Accounting fees 14,000 Amortization expenses 28,000 Depreciation expenses 35,000 232,200 Sales Expenses Selling expenses 41,000 Advertising expenses 35,000 Sales Salaries expenses 33,000 109,000 Total Operating expenses 341,200 Net Operating Income 1,448,800 Non-Operating Income and Expenses Interest income 4,600 Dividend income 3,800 Gain on disposal of Plant assets 92,000 Unrealized gain on trading securities 31,000 Gain on sale of discontinued operations 66,000 Interest expense (8,100) Loss on asset Impairment (9,200) Net Non-Operating income 180,100 Income before Income tax 1,628,900 Income tax @45% 733,005 Net Income 895,895