Prepare the correct income statement using the firm provided.Explain to Jessica what mistakes she made. Rent Expense, FactoryRent Expense, Office BldgInsurance Expense, FactoryInsurance Expense, Office Bldg53,00014,00010,0006,0003,000Indirect Labor25,00012,00013,00050,000770,00022,000100,000124,00031,000Depreciation Expense, Office BldgDepreciation Expense, FactoryDirect LaborCost of Goods SoldFactory MaintenanceAdvertising ExpenseSelling and Admin Salary ExpenseMisc Selling and Admin ExpensesTotal Expenses1,233,000167,000Net IncomeAfter looking over Jessica's statement, you tell Doug that she is not ready to do suchwork and she needs to complete school first. You inform him you will correct the statementand explain to Jessica what errors she made.Required:Prepare the correct Income statement using the form providedExplain to Jessica what mistakes she made SaveACC220Chaps16-18SP19 - Protected ViewSearchA Steven DorfmanSDHomeInsertPage LayoutFormulasDataReviewViewHelpROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View.A ShareP CommEnable EditingfeABEDouglas Werther is the principal owner of Green Pen Company. His 19 year old daughter, Jessica, is a first year accounting student She tookFinancial Accounting, but not Managerial Accounting. Douglas would like to give his daughter practical experience. He allows her to preparethe company's Income Statement and have her show it to you, the company's controller. Below is the statement Jessica prepared:(Assume all account balances are accurate)4.GHKGreen Pen CompanyIncome StatementYear Ended December 31, 2018Sales1,400,000Expenses:Raw Materials53,000Rent Expense, FactoryRent Expense, Office BldgInsurance Expense, FactoryInsurance Expense, Office BldgIndirect Labor14,00010,0006,0003,00025,000Depreciation Expense, Office BldgDepreciation Expense, Factory12,00013,00050,000Direct LaborCost of Goods Sold770,00022,000Factory MaintenanceAdvertising ExpenseSelling and Admin Salary ExpenseMisc Selling and Admin ExpensesTotal Expenses100,000124,00031,0001,233,000167,000Net IncomeTestadyDELL

Green Pen Company Income Statement Year Ended Dec 31, 2108 Sales 1400000 Less Cost of…

Douglas Werther is the principal owner of Green Pen Company. His 19 year old daughter, Jessica, is a first year accounting student. She took Financial Accounting, but not Managerial Accounting. Douglas would like to give his daughter practical experience. He allows her to prepare the company's Income Statement and have her show it to you, the company's controller. Below is the statement Jessica prepared: (Assume all account balances are accurate) Green Pen Company Income Statement Year Ended December 31, 2018 Sales 1,400,000 Expenses: Raw Materials 53,000 Rent Expense, Factory Rent Expense, Office Bldg Insurance Expense, Factory Insurance Expense, Office Bldg 14,000 10,000 6,000 3,000 Indirect Labor 25,000 Depreciation Expense, Office Bldg Depreciation Expense, Factory 12,000 13,000 Direct Labor 50,000 Cost of Goods Sold Factory Maintenance Advertising Expense Selling and Admin Salary Expense Misc Selling and Admin Expenses Total Expenses 770,000 22,000 100,000 124,000 31,000 1,233,000 167,000 Net Income