Cost of Goods Sold and Income Statement Schuch Company presents you with the following account bal-ances taken from its December 31 adjusted trial balance: IInventory, January 1 $ 43,000 Selling expenses 35,000 Purchases 100,000 Sales 250,000 General and administrative expenses 22,000 Purchases returns $3,500 Interest expense 4,000 Sales discounts taken 2,000 Gain on sale of property (pretax) 7,000 Freight-in 5,000 Additional data: 1. A physical count reveals an ending-inventory of $22,500 on December 31. 2. Twenty-five thousand shares of common stock have been outstanding the entire year. 3. The income tax rate is 30% on all items of income. Required: 1. As a supporting document for Requirements 2 and 3, prepare a separate schedule for Schuch’s cost of goods sold. 2. Prepare a multiple-step income statement. 3. Prepare a single-step income statement.
5.2 Cost of Goods Sold and Income Statement Schuch Company presents you with the following account bal-ances taken from its December 31 adjusted
IInventory, January 1 $ 43,000
Selling expenses 35,000
Purchases 100,000
Sales 250,000
General and administrative expenses 22,000
Purchases returns $3,500
Interest expense 4,000
Sales discounts taken 2,000
Gain on sale of property (pretax) 7,000
Freight-in 5,000
Additional data:
1. A physical count reveals an ending-inventory of $22,500 on December 31.
2. Twenty-five thousand shares of common stock have been outstanding the entire year.
3. The income tax rate is 30% on all items of income.
Required:
1. As a supporting document for Requirements 2 and 3, prepare a separate schedule for Schuch’s cost of goods sold.
2. Prepare a multiple-step income statement.
3. Prepare a single-step income statement.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
