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Prepare an Income Statement from the partial worksheet CHAPTER 12 Completion of

ID: 2586061 • Letter: P

Question

Prepare an Income Statement from the partial worksheet

CHAPTER 12 Completion of the Accounting Cycle for a PARTIAL WORKSHEET FOR YEAR ENDED DECEMBER 31, 201x Dr Account Tales 360 00 27000 90000 Sales Sales Returns and Allowances Sales Discount 13500 16 5 00 Purchases Returns and Alow. 108 00 3 5 000 1s000 1 4 5 00 salaries Expense insurance Expense Expense 2 4000 Rental Income Rent Expense 225 00 2 000 Salaries Payable 2663 00 369 8 00 103 5 00 369 800 369 8 00 Totals Net Income Totals -2. Prepare a statement of owner's equity and a classified balance sheet fro the worksheet for James Company in Figure 12.14. (Note: Of the Mor Payable, $240 is due within 1 year.) JAMES COMPANY PARTIAL WORKSHEET FOR YEAR ENDED DECEMBER 31, 201x Balance Sheet Account Titles Dr Ct Cash 2400000

Explanation / Answer

Income statement

Revenue and Gains

Details

(In $)

Gross Sales

290,000

Less:

Sales Return and allowances

(11,500)

Sales Discount

(7,000)

271,500

Total Income

271,500

Less:

Cost of Sales

Purchases

89,000

Less:

Purchase Return

(16,500)

Purchases Discount

(12,300)

(60,200)

Freight in

(10,800)

Gross Profit

200,500

Less: Selling and Distribution cost

Advertisement expense

(14,500)

Less: general and Adm. cost

Salary Expense

(35,000)

Insurance expense

(18,000)

Rent Expense

(22,500)

Depreciation

(22,000)

Add: Other Operating Income and gains

Rental Income

24,000

Net Income

112,500

Revenue and Gains

Details

(In $)

Gross Sales

290,000

Less:

Sales Return and allowances

(11,500)

Sales Discount

(7,000)

271,500

Total Income

271,500

Less:

Cost of Sales

Purchases

89,000

Less:

Purchase Return

(16,500)

Purchases Discount

(12,300)

(60,200)

Freight in

(10,800)

Gross Profit

200,500

Less: Selling and Distribution cost

Advertisement expense

(14,500)

Less: general and Adm. cost

Salary Expense

(35,000)

Insurance expense

(18,000)

Rent Expense

(22,500)

Depreciation

(22,000)

Add: Other Operating Income and gains

Rental Income

24,000

Net Income

112,500

Last Year Loss (36,000 - 27,000) 9,000 Net Income 103,500