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Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 5, Problem 5.6E
Condensed Statement of Net Income. Using the information provided in E5-5 prepare a condensed, multiple-step statement of net income for Boley Boxes. Inc that includes all supporting schedules.
E5-5 Multiple-step Statement of Net Income. The current year’s statement of net income for Boley Boxes Inc. in a single-step format follows.
Boley Boxes. Inc Income Statement For the Year Ended December 31 | ||
Revenues and Gains | ||
Sales | $875,650 | |
interest income | 325 | |
Dividend Income | 780 | |
Gain on Sale of Investment Securities | 4,300 | |
Unrealized Gain on Tradino Securities | 6,000 | |
Total Revenues and Gains | $887,055 | |
Expenses and Losses | ||
Cost of Goods Sold | $45,000 | |
Selling Expenses | 32,560 | |
Sales Salaries Expense | 14,567 | |
Advertising Expense | 16,400 | |
2500 | ||
Amortzation Exponso—General | 1680 | |
Office Salaries Expense | 19,400 | |
Office Supplies Expense | 23,000 | |
Loss on Asset impairment | 3,450 | |
Legal Fees—General | 2,150 | |
Accounting Fees—General | 4300 | |
Interset Expense | 5,000 | |
income Tax Expense at 40% • 40% × ($887,055 − $170,007) = 40% × $717,048 = $286,819 |
286,819 | |
Total Expenses and Losses | (456,826) | |
Income from Continuing Operations | $430,229 | |
Gain on Discontnued Operations—Net of tax | _2,700 | |
Net Income | $432,929 |
Prepare Boleys income statement using a multiple-step format.
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Chapter 5 Solutions
Intermediate Accounting
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