Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter5: Accounting For Retail Businesses
Section: Chapter Questions
Problem 5PB: Multiple-step income statement and balance sheet The following selected accounts and their current...
Related questions
Question
With the information given prepare a statement of stockholders wqui
Expert Solution
Step 1
To prepare a statement of stockholders' equity, we need to calculate net income.
Income statement of Prescott Inc.
For the year ended September 30, 20Y8
Particulars | Amount in $ | Amount in $ |
Sales | 8,025,750 | |
Cost of goods sold | 4,893,750 | |
Gross Profit | 3,132,000 | |
Operating Expenses:- | ||
Selling expense:- | ||
Sales salaried expenses | 874,800 | |
Advertising expenses | 103,275 | |
Depreciation expense- store equipment | 18,675 | |
Miscellaneous selling expenses | 4,500 | |
Total selling expenses | 1,001,250 | |
Administrative expenses:- | ||
Office salaries expenses | 174,150 | |
Rent expense | 89,775 | |
Insurance expenses | 51,638 | |
Depreciation expense- office equipment | 36,450 | |
Office supplies expense | 3,712 | |
Miscellaneous administration Expense | 4,275 | |
Total administration Expense | 360,000 | |
Total operating expenses | 1,361,250 | |
Operating income | 1,770,750 | |
Other expenses:- | ||
Interest expense | 27,000 | |
Net Income | 1,743,750 | |
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