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gizmo_the_mogwai [7]
3 years ago
11

Prepare a multiple-step income statement for Surry Co. from the following data for the year ended December 31, 2016. Sales $915,

000 cost of merchandise sold $670,000 administrative expenses $30,000 interest expense $12,000 rent revenue $19,000 customer refunds and allowances $55,000 selling expenses $120,000
Business
1 answer:
gavmur [86]3 years ago
6 0

Answer:

                                          Surry Co.

Income Statement for the year ended December 31, 2016

Sales                                                                      $915000

Less Cost of Merchandise Sold                           $670000

Gross Profit                                                            $245000

<u>LESS OPERATING INCOME</u>

<u><em>Selling Expenses</em></u>

Customer Refunds and allowances   $  55000

Selling expenses                                 $ 120000  $175000

<u><em>Administrative Expenses</em></u>

Administrative expenses                     $ 30000   $30000

Total Operating expenses                                   $205000

Operating Income                                                 $ 40000

<u>NON-OPERATING INCOME</u>

Interest Expense                                 ($12000)    

Rent Revenue                                      $19000  

Total Non-operating Income                                 $  7000

Net Income                                                             $47000

Explanation:

A multiple-step Income Statement separate Operating Revenues and Operating Expenses from Non-Operating Revenues and Non-Operating Expense.

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4 years ago
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Branch Corporation issued $5 million of commercial paper on March 1 on a nine-month note. Interest was discounted at issuance at
defon

Answer:

Journal Entry

March 1

Dr. Cash                                     $4,550,000

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December 1

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Cr. Discount on Note Payable $450,000  

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Cr. Cash                                     $5,000,000

Explanation:

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Jessica invested $2,000 today in an investment that pays 6.5 percent annual interest. Which one of the following statements is c
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Answer:

If the interest rate is higher, to earn the same amount, she will need to invest a lesser amount of money.

Explanation:

Giving the following information:

Jessica invested $2,000 today in an investment that pays 6.5 percent annual interest.

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Answer:

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