Prepare 2014\'s income statement from the general ledger below Account: Cash 101

Question

Prepare 2014's income statement from the general ledger below Account: Cash 101 Date Explanation Ref Debit Credit Balance 30-Nov Balance 244,430 Account: Petty Cash 105 Date Explanation Ref Debit Credit Balance 30-Nov Balance 150 Account: Accounts Receivable 112 Date Explanation Ref Debit Credit Balance 30-Nov Balance 317,400 Account: Allowance for Doubtful Accounts 113 Date Explanation Ref Debit Credit Balance 30-Nov Balance 4,560 Account: Notes Receivable 115 Date Explanation Ref Debit Credit Balance 30-Nov Balance 45,000 Account: Interest Receivable 118 Date Explanation Ref Debit Credit Balance 30-Nov Balance 0 Account: Inventory 120 Date Explanation Ref Debit Credit Balance 30-Nov Balance 531,960 Account: Supplies 126 Date Explanation Ref Debit Credit Balance 30-Nov Balance 2,320 Account: Prepaid Insurance 130 Date Explanation Ref Debit Credit Balance 30-Nov Balance 11,020 Account: Prepaid Rent 131 Date Explanation Ref Debit Credit Balance 30-Nov Balance 25,410 Account:Other Assets 135 Date Explanation Ref Debit Credit Balance 30-Nov Balance 139,769 Account:Land 140 Date Explanation Ref Debit Credit Balance 1-Jan Balance 43,000 Account:Building 145 Date Explanation Ref Debit Credit Balance 1-Jan Balance 306,000 Account:Accum. Depr - Building 146 Date Explanation Ref Debit Credit Balance 1-Jan Balance 73,040 Account:Equipment 151 Date Explanation Ref Debit Credit Balance 1-Jan Balance 32,800 Account:Accum. Depr - Equipment 152 Date Explanation Ref Debit Credit Balance 1-Jan Balance 13,200 Account:Trucks 163 Date Explanation Ref Debit Credit Balance 1-Jan Balance 78,400 Account:Accum. Depr - Trucks 164 Date Explanation Ref Debit Credit Balance 1-Jan Balance 39,540 Account:Notes Payable 200 Date Explanation Ref Debit Credit Balance 30-Nov Balance 15,000 Account:Accounts Payable 201 Date Explanation Ref Debit Credit Balance 30-Nov Balance 126,850 Account:FICA Taxes Payable 214 Date Explanation Ref Debit Credit Balance 30-Nov Balance 1,787 Account:Income Taxes Payable 215 Date Explanation Ref Debit Credit Balance 30-Nov Balance 0 Account:Federal Withholding Taxes Payable 216 Date Explanation Ref Debit Credit Balance 30-Nov Balance 9,573 Account:State Withholding Taxes Payable 218 Date Explanation Ref Debit Credit Balance 30-Nov Balance 2,486 Account:FUTA Taxes Payable 224 Date Explanation Ref Debit Credit Balance 30-Nov Balance 400 Account:SUTA Taxes Payable 225 Date Explanation Ref Debit Credit Balance 30-Nov Balance 2,600 Account:Wages and Salaries Payable 226 Date Explanation Ref Debit Credit Balance 30-Nov 0 Account:Interest Payable 230 Date Explanation Ref Debit Credit Balance 30-Nov Balance 0 Account:Dividends Payable 250 Date Explanation Ref Debit Credit Balance 30-Nov Balance 0 Account:Notes Payable (Long term) 268 Date Explanation Ref Debit Credit Balance 30-Nov Balance 113,000 Account: Bonds Payable 270 Date Explanation Ref Debit Credit Balance 1-Jan Balance 275,000 Account: Discount on Bonds Payable 273 Date Explanation Ref Debit Credit Balance 30-Nov Balance 17,131 Account: Common Stock - $30 Stated Value 311 Date Explanation Ref Debit Credit Balance 1-Jan Balance (6300 shares) 189,000 Account: Paid-in Captial in Excess of Stated Value 317 Date Explanation Ref Debit Credit Balance 1-Jan Balance 256,400 Account: Retained Earnings 320 Date Explanation Ref Debit Credit Balance 1-Jan Balance 362,748 Account: Treasury Stock 330 Date Explanation Ref Debit Credit Balance 1-Jan Balance (700 shares) 42,610 Account: Dividends 332 Date Explanation Ref Debit Credit Balance 0 Account: Income Summary 350 Date Explanation Ref Debit Credit Balance Account: Sales Revenue 401 Date Explanation Ref Debit Credit Balance 30-Nov 5,234,940 Account: Sales Return and Allowance 412 Date Explanation Ref Debit Credit Balance 30-Nov 9,380 Account: Sales Discount 414 Date Explanation Ref Debit Credit Balance 30-Nov 73,044 Account: Cost of Goods Sold 505 Date Explanation Ref Debit Credit Balance 30-Nov 3,648,722 Account: Advertising Expense 610 Date Explanation Ref Debit Credit Balance 30-Nov 6,578 Account: Bad Debt Expense 612 Date Explanation Ref Debit Credit Balance 1-Jan 0 Account: Supplies Expense 631 Date Explanation Ref Debit Credit Balance 30-Nov 1,540 Account: Freight-out 644 Date Explanation Ref Debit Credit Balance 30-Nov 17,732 Account: Misc Expense 649 Date Explanation Ref Debit Credit Balance Account: Depreciation Expense 711 Date Explanation Ref Debit Credit Balance Account: Insurance Expense 722 Date Explanation Ref Debit Credit Balance Account: Salaries and Wages Expense 726 Date Explanation Ref Debit Credit Balance 30-Nov 933,122 Account: Rent Expense 729 Date Explanation Ref Debit Credit Balance 0 Account: Payroll Tax Expense 730 Date Explanation Ref Debit Credit Balance 30-Nov 82,916 Account: Utilities Expense 732 Date Explanation Ref Debit Credit Balance 30-Nov 16,270 Account: Interest Revenue 820 Date Explanation Ref Debit Credit Balance 30-Nov 3,150 Account: Gain on Disposal of Plant Assets 826 Date Explanation Ref Debit Credit Balance Account: Interest Expense 905 Date Explanation Ref Debit Credit Balance 30-Nov 24,570 Account:Loss on Disposal of Plant Assets 921 Date Explanation Ref Debit Credit Balance 30-Nov 0 Account:Income Tax Expense 999 Date Explanation Ref Debit Credit Balance 30-Nov 72,000 Prepare 2014's income statement from the general ledger below

Explanation / Answer

Sales will be taken as net of sales return

Interest expense will be considered seperately, as it is non operating expense - finance cost specifically

Statement of Net Income Amount Revenue 5234940 Less: Sales return and allowances 9380 Net Revenue 5225560 Less: Cost of Goods Sold 3648722 Gross income 1576838 Less: Operating expenses Sales Discount 73044 Advertising Expense 6578 Supplies Expense 1540 Freight - Out 17732 Salaries & Wages Expense 933122 Payroll Tax expense 82916 Utilities Expense 16270 Total Operating Expenses 1131202 Operating Income 445636 Gross Income - Operating expenses Add: Non Opearating Income Interest Revenue 3150 Less: Non operating expense Interest Expense 24570 Net Income before taxes 424216 Less: Income tax expense 72000 Net Income 352216

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---