create income statement based off number 1-7

Victor Holt, the accounting manager of Sexton, Inc., gathered the following information for Year 4. Some of it can be used to construct an income statement for Year 4. Ignore items that do not appear on an income statement. Some computation may be required. For example, the cost of manufacturing equipment would not appear on the income statement. However, the cost of manufacturing equipment is needed to compute the amount of depreciation. All units of product were started and completed in Year 4. 1. Issued $864,000 of common stock. 2. Paid engineers in the product design department $10,000 for salaries that were accrued at the end of the previous year. 3. Incurred advertising expenses of $70,000. 4. Paid $720,000 for materials used to manufacture the company's product. 5. Incurred utility costs of $160,000. These costs were allocated to different departments on the basis of square footage of floor space. Mr. Holt identified three departments and determined the square footage of floor space for each department to be as shown in the following table. Department Square Footage Research and development 10,000 Manufacturing 60,000 Selling and administrative 30,000 Total 100,000 6. Paid $880,000 for wages of production workers. 7. Paid cash of $658,000 for salaries of administrative personnel. There was $ 16,000 of accrued salaries owed to administrative personnel at the end of Year 4. There was no beginning balance in the Salaries Payable account for administrative personnel. Victor Holt, the accounting manager of Sexton, Inc., gathered the following information for Year 4. Some of it can be used to construct an income statement for Year 4. Ignore items that do not appear on an income statement. Some computation may be required. For example, the cost of manufacturing equipment would not appear on the income statement. However, the cost of manufacturing equipment is needed to compute the amount of depreciation. All units of product were started and completed in Year 4. 1. Issued $864,000 of common stock. 2. Paid engineers in the product design department $10,000 for salaries that were accrued at the end of the previous year. 3. Incurred advertising expenses of $70,000. 4. Paid $720,000 for materials used to manufacture the company's product. 5. Incurred utility costs of $160,000. These costs were allocated to different departments on the basis of square footage of floor space. Mr. Holt identified three departments and determined the square footage of floor space for each department to be as shown in the following table. Department Square Footage Research and development 10,000 Manufacturing 60,000 Selling and administrative 30,000 Total 100,000 6. Paid $880,000 for wages of production workers. 7. Paid cash of $658,000 for salaries of administrative personnel. There was $ 16,000 of accrued salaries owed to administrative personnel at the end of Year 4. There was no beginning balance in the Salaries Payable account for administrative personnel