$ 15,000,000(9,000,000)6,000,000Sales revenueCost of goods soldGross profitOperating expenses:General and administrative expenseSelling expenseRestructuring costsLoss on inventory write-downTotal operating expensesOperating income$ (1,000,000)(500,000)(300,000)(400,000)(2,200,000)3,800,000Other income (expense):Interest expense(700,000)3,100,000(775,000)2,325,000Income before income taxesIncome tax expenseNet incomeOther comprehensive income, (net of tax):Foreign currency translation adjustmentGains on debt securitiesTotal other comprehensive income (loss)Comprehensive income Duke Company's records show the following account balances at December 31, 2021:Sales revenue$ 15.000.000Cost of goods sold9,000,000General and administrative expense1.000.000Selling expense500,000Interest expense700.000Income tax expense has not yet been determined. The following events also occurred during 2021. All transactions are material in amount.1. $300,000 in restructuring costs were incurred in connection with plant closings.2. Inventory costing $400,000 was written off as obsolete. Material losses of this type are considered to be unusual.3. It was discovered that depreciation expense for 2020 was understated by $50.000 due to a mathematical error.4. The company experienced a negative foreign currency translation adjustment of S$200,000 and had an unrealized gain on debt securities of$180,000.

Income Statement:-It is a statement in which revenue and expenses during the period recorded result…

Duke Company's records show the following account balances at December 31, 2021: Sales revenue S 15,000,000 Cost of goods sold 9,000,000 General and administrative expense 1,000,000 Selling expense 500,000 Interest expense 700,000 Income tax expense has not yet been determined. The following events also occurred during 2021. All transactions are material in amount. 1. S300,000 in restructuring costs were incurred in connection with plant closings. 2. Inventory costing $400,000 was written off as obsolete. Material losses of this type are considered to be unusual. 3. It was discovered that depreciation expense for 2020 was understated by $50,000 due to a mathematical error. 4. The company experienced a negative foreign currency translation adjustment of $200,000 and had an unrealized gain on debt securities of SI80,000.

Duke Company's records show the following account balances at December 31, 2021: Sales revenue S 15,000,000 Cost of goods sold 9,000,000 General and administrative expense 1,000,000 Selling expense 500,000 Interest expense 700,000 Income tax expense has not yet been determined. The following events also occurred during 2021. All transactions are material in amount. 1. S300,000 in restructuring costs were incurred in connection with plant closings. 2. Inventory costing $400,000 was written off as obsolete. Material losses of this type are considered to be unusual. 3. It was discovered that depreciation expense for 2020 was understated by $50,000 due to a mathematical error. 4. The company experienced a negative foreign currency translation adjustment of $200,000 and had an unrealized gain on debt securities of SI80,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

$ 15,000,000
(9,000,000)
6,000,000
Sales revenue
Cost of goods sold
Gross profit
Operating expenses:
General and administrative expense
Selling expense
Restructuring costs
Loss on inventory write-down
Total operating expenses
Operating income
$ (1,000,000)
(500,000)
(300,000)
(400,000)
(2,200,000)
3,800,000
Other income (expense):
Interest expense
(700,000)
3,100,000
(775,000)
2,325,000
Income before income taxes
Income tax expense
Net income
Other comprehensive income, (net of tax):
Foreign currency translation adjustment
Gains on debt securities
Total other comprehensive income (loss)
Comprehensive income

Duke Company's records show the following account balances at December 31, 2021:
Sales revenue
$ 15.000.000
Cost of goods sold
9,000,000
General and administrative expense
1.000.000
Selling expense
500,000
Interest expense
700.000
Income tax expense has not yet been determined. The following events also occurred during 2021. All transactions are material in amount.
1. $300,000 in restructuring costs were incurred in connection with plant closings.
2. Inventory costing $400,000 was written off as obsolete. Material losses of this type are considered to be unusual.
3. It was discovered that depreciation expense for 2020 was understated by $50.000 due to a mathematical error.
4. The company experienced a negative foreign currency translation adjustment of S$200,000 and had an unrealized gain on debt securities of
$180,000.

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