FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values.

Pretax income ?
Gross profit ?
Allocated costs (uncontrollable) $2,040
Labor expense 41,580
Sales 189,000
Research and development (uncontrollable) 310
Depreciation expense 16,000
Net income/(loss) ?
Cost of goods sold 119,070
Selling expense 1,250
Total expenses ?
Marketing costs (uncontrollable) 790
Administrative expense 700
Income tax expense (21% of pretax income) ?
Other expenses 330

A. Prepare the income statement using the above information. Round your answers to the nearest dollar.

BDS Enterprises
Income Statement
For the Year Ended Dec. 31, 20xx
Sales  $fill in the blank cde9000a3faf056_2
Cost of Goods Sold  fill in the blank cde9000a3faf056_4
Gross Profit  $fill in the blank cde9000a3faf056_6
Labor Expense  $fill in the blank cde9000a3faf056_8
Depreciation Expense  fill in the blank cde9000a3faf056_10
Selling Expense  fill in the blank cde9000a3faf056_12
Administrative Expense  fill in the blank cde9000a3faf056_14
Other Expenses  fill in the blank cde9000a3faf056_16
Allocated Costs (Uncontrollable)  fill in the blank cde9000a3faf056_18
Research and Development (Uncontrollable)  fill in the blank cde9000a3faf056_20
Marketing Costs (Uncontrollable)  fill in the blank cde9000a3faf056_22
Total Expenses $fill in the blank cde9000a3faf056_23
Pretax Income  $fill in the blank cde9000a3faf056_25
Income Tax Expense (21% of Pretax Income)  fill in the blank cde9000a3faf056_27
Net Income  $fill in the blank cde9000a3faf056_29
 

 

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