ACC 290 Week 3 Assignment Help | University Of Phoenix
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- 30 Nov 2019
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ACC 290 Week 3 Assignment Help | University Of Phoenix
Week 3 Assignment 1
Preparing a Multiple‐Step
Income Statement
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 |
|
|
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.
4. 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.
5. 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.
USA 
India
Question Attachments
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