A part-time bookkeeper prepared this income statement for Kritek Company for the year ending December 31, 2012.
Question:
A part-time bookkeeper prepared this income statement for Kritek Company for the year ending December 31, 2012.
As an experienced, knowledgeable accountant, you review the statement and determine the following facts.1. Sales include $12,000 of deposits from customers for future sales orders.2. Other revenues contain two items: interest expense $4,000 and interest revenue $5,300.3. Selling expenses consist of sales salaries and wages $82,500, advertising $13,000, and depreciation on store equipment $7,500.4. Administrative expenses consist of office salaries $23,000; utilities expense $9,500; rent expense $14,500; and insurance expense $7,000. Insurance expense includes $1,200 of insurance applicable to 2013.InstructionsPrepare a correct detailed multiple-step income statement. Assume a tax rate of25%.
Step by Step Answer:
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso