Accounting- preparing a multistep statement

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Preparing a Multiple‐Step Income Statement

    • Due  May 22, 11:59 PM
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    • POINTS 8
  •  Practice/Simulation/Homework/Game
  • 20
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Purpose of Assignment 

The purpose of this assignment is to help you become familiar with the parts of the multiple‐step income statement. 

Assignment Steps 

Resources: Financial Accounting: Tools for Business Decision Making 

Scenario: An inexperienced accountant prepared this condensed income statement for Simon Company, a retail firm that has been in business for a number of years.

 

SIMON COMPANY

Income Statement
For the Year Ended December 31, 2017 

 

Revenues

 

Net sales

$850,000

Other revenues

22,000

 

872,000

Cost of goods sold

555,000

Gross profit

317,000

Operating expenses

 

Selling expenses

109,000

Administrative expenses

103,000

 

212,000

Net earnings

$105,000

As an experienced, knowledgeable accountant, you review the statement and determine the following facts:

  1. Net sales consist of: sales $911,000, less freight-out on merchandise sold $33,000, and sales returns and allowances $28,000.
  2. Other revenues consist of sales discounts $18,000 and rent revenue $4,000.
  3. Selling expenses consist of salespersons' salaries $80,000, depreciation on equipment $10,000, advertising $13,000, and sales commissions $6,000.  The commissions represent commissions paid. At December 21, $3,000 of commissions have been earned by salespersons but have not been paid.  All compensation should be recorded as Salaries and Wages Expense.
  4. Administrative expenses consist of office salaries $47,000, dividends $18,000, utilities $12,000, interest expense $2,000, and rent expense $24,000, which includes prepayments totaling $6,000 for the first quarter of 2018. 

Prepare a detailed multi-step income statement with a brief explanation of 700 words. Assume a 25% tax rate. 

Show your work on the Excel® spreadsheet and submit with your explanation.

Click the Assignment Files tab to submit your assignment.

    • Posted: 2 years ago
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    • Rated 1 times

      Income Statement

      Assignment Steps-need to be under 10 percent plagiarism

      Resources: Financial Accounting: Tools for Business Decision Making

      Scenario: An inexperienced accountant prepared this condensed …

    • Scenario:An inexperienced accountant prepared this condensed income statement for Simon Company, a retail firm that has been in business for a number of years.

      SIMON COMPANY

      Income Statement

    • Scenario: An inexperienced accountant prepared this condensed income statement for Simon Company, a retail firm that has been in business for a number of years.

      SIMON COMPANY

      Income Statement

    • ****Need a reliable person who will submit plagiarism free work****


      DUE DATE is 10/28/2017*********


      The purpose of this assignment is to help you become familiar with the parts of the multiple‐step …

    • Rated 1 times

      500 words paper

      Scenario: An inexperienced accountant prepared this condensed income statement for Simon Company, a retail firm that has been in business for a number of years.

      SIMON COMPANY

      Income Statement


    • Resources: Financial Accounting: Tools for Business Decision Making

      Scenario: An inexperienced accountant prepared this condensed income statement for Simon Company, a retail firm that has been in …

    • Scenario: An inexperienced accountant prepared this condensed income statement for Simon Company, a retail firm that has been in business for a number of years.

      SIMON COMPANY

      Income Statement

    • Assignment Steps

      Resources: Financial Accounting: Tools for Business Decision Making

      Scenario: An inexperienced accountant prepared this condensed income statement for Simon Company, a …


    • I need original work, no plagiarism pls.


      Preparing a Multiple‐Step Income Statement

      • Due Sep 012, 5:59 PM
      • Not Submitted
      • POINTS 8
      • Practice/Simulation/Homework/Game
      • no new messages

    • Not rated

      SIMON COMPANY

      The purpose of this assignment is to help you become familiar with the parts of the multiple‐step income statement.

      Assignment Steps

      Resources: Financial Accounting: Tools for …