erform the Reperformance or Recalculation procedures to check the mathematical accuracy of the Income Statement. What issue did you find? What is the next step? Create a Corrected version of the Income Statement. Income Statement For the Year Ended For the Year Ended Revenue 3/31/2021 3/31/2022 Sales Revenue: Corporate Accounts $ 353,739.57 $ 343,050.56 Sales Revenues: Storefront $ 80,649.00 $ 91,411.50 Total Sales Revenue $ 434,388.57 $ 434,462.06 Cost of Goods Sold: Ingredients $ 69,736.39 $ 64,645.64 Cost of Goods Sold: Boxes and Cupcake Cups $ 3,875.55 $ 3,755.55 Cost of Goods Sold: Beverages $ 5,466.50 $ 5,681.50 Total COGS $ 76,078.44 $ 74,082.69 Gross Profit $ 358,310.13 $ 360,379.37 Interest Revenue $ 89.00 $ 65.00 Gross Profit Plus Interest Revenue $ 358,399.13 $ 360,444.37 Expenses Wage Expense $ 216,719.00 $ 217,791.00 Wage Tax Expense $ 17,971.24 $ 18,077.94 Medical Insurance Expense $ 8,100.00 $ 17,100.00 Auto Insurance Expense $ 1,035.00 $ 1,035.00 Interest Expense $ 3,996.90 $ 4,197.69 Electrical & Gas Service Expense $ 1,523.20 $ 1,708.00 Liability Insurance Expense $ 3,768.40 $ 3,693.60 Telecommunications Expense $ 472.50 $ 462.00 Cell Phone Service Expense $ 912.00 $ 933.00 Postage Expense $ 139.50 $ 135.90 Professional Services Expense $ 2,070.00 $ 2,122.50 Maintenance Expense $ 1,212.00 $ 1,132.00 Office Supplies Expense $ 3,050.00 $ 7,342.00 Dry Cleaning Expense $ 398.75 $ 416.15 Storefront Paper Supplies Expense $ 778.25 $ 1,869.00 Rental Expense $ 8,752.00 $ 4,752.00 Waste Services Expense $ 150.00 $ 150.00 Car Maintenance and Fuel Expense $ 995.38 $ 1,026.78 Repair Expense $ 372.50 $ 381.25 Water Expense $ 378.75 $ 373.75 Soda Machine Repair and CO2 Expense $ 1,156.00 $ 1,128.00 Interest Expense $ 3,996.90 $ 4,197.69 Credit Card Expense $ 878.31 $ 897.89 Cooking Supplies Expense $ 12,704.00 $ 10,858.00 Banking Fees $ 445.00 $ 445.00 Selling and Administrative Expenses $ 288,978.68 $ 298,028.45 Depreciation Expense: Equipment $ 3,627.00 $ 4,152.00 Depreciation Expense: Plant & Property $ 3,300.00 $ 3,300.00 Total Depreciation Expense $ 6,927.00 $ 7,452.00 Total Expenses $ 295,905.68 $ 305,480.45 Earnings Before Income Taxes $ 62,493.45 $ 54,963.92 Income Tax Expense $ 21,247.78 $ 18,683.66 Net Income $ 41,245.67 $ 36,280.26 Earnings per Share $ 0.82 $ 0.73
erform the Reperformance or Recalculation procedures to check the mathematical accuracy of the Income Statement. What issue did you find? What is the next step? Create a Corrected version of the Income Statement. Income Statement For the Year Ended For the Year Ended Revenue 3/31/2021 3/31/2022 Sales Revenue: Corporate Accounts $ 353,739.57 $ 343,050.56 Sales Revenues: Storefront $ 80,649.00 $ 91,411.50 Total Sales Revenue $ 434,388.57 $ 434,462.06 Cost of Goods Sold: Ingredients $ 69,736.39 $ 64,645.64 Cost of Goods Sold: Boxes and Cupcake Cups $ 3,875.55 $ 3,755.55 Cost of Goods Sold: Beverages $ 5,466.50 $ 5,681.50 Total COGS $ 76,078.44 $ 74,082.69 Gross Profit $ 358,310.13 $ 360,379.37 Interest Revenue $ 89.00 $ 65.00 Gross Profit Plus Interest Revenue $ 358,399.13 $ 360,444.37 Expenses Wage Expense $ 216,719.00 $ 217,791.00 Wage Tax Expense $ 17,971.24 $ 18,077.94 Medical Insurance Expense $ 8,100.00 $ 17,100.00 Auto Insurance Expense $ 1,035.00 $ 1,035.00 Interest Expense $ 3,996.90 $ 4,197.69 Electrical & Gas Service Expense $ 1,523.20 $ 1,708.00 Liability Insurance Expense $ 3,768.40 $ 3,693.60 Telecommunications Expense $ 472.50 $ 462.00 Cell Phone Service Expense $ 912.00 $ 933.00 Postage Expense $ 139.50 $ 135.90 Professional Services Expense $ 2,070.00 $ 2,122.50 Maintenance Expense $ 1,212.00 $ 1,132.00 Office Supplies Expense $ 3,050.00 $ 7,342.00 Dry Cleaning Expense $ 398.75 $ 416.15 Storefront Paper Supplies Expense $ 778.25 $ 1,869.00 Rental Expense $ 8,752.00 $ 4,752.00 Waste Services Expense $ 150.00 $ 150.00 Car Maintenance and Fuel Expense $ 995.38 $ 1,026.78 Repair Expense $ 372.50 $ 381.25 Water Expense $ 378.75 $ 373.75 Soda Machine Repair and CO2 Expense $ 1,156.00 $ 1,128.00 Interest Expense $ 3,996.90 $ 4,197.69 Credit Card Expense $ 878.31 $ 897.89 Cooking Supplies Expense $ 12,704.00 $ 10,858.00 Banking Fees $ 445.00 $ 445.00 Selling and Administrative Expenses $ 288,978.68 $ 298,028.45 Depreciation Expense: Equipment $ 3,627.00 $ 4,152.00 Depreciation Expense: Plant & Property $ 3,300.00 $ 3,300.00 Total Depreciation Expense $ 6,927.00 $ 7,452.00 Total Expenses $ 295,905.68 $ 305,480.45 Earnings Before Income Taxes $ 62,493.45 $ 54,963.92 Income Tax Expense $ 21,247.78 $ 18,683.66 Net Income $ 41,245.67 $ 36,280.26 Earnings per Share $ 0.82 $ 0.73
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 15EA: The following select account data is taken from the records of Reese Industries for 2019. A. Use the...
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Question
Perform the Reperformance or Recalculation procedures to check the mathematical accuracy of
the Income Statement. What issue did you find? What is the next step? Create a Corrected
version of the Income Statement.
Income Statement | ||
For the Year Ended | For the Year Ended | |
Revenue | 3/31/2021 | 3/31/2022 |
Sales Revenue: Corporate Accounts | $ 353,739.57 | $ 343,050.56 |
Sales Revenues: Storefront | $ 80,649.00 | $ 91,411.50 |
Total Sales Revenue | $ 434,388.57 | $ 434,462.06 |
Cost of Goods Sold: Ingredients | $ 69,736.39 | $ 64,645.64 |
Cost of Goods Sold: Boxes and Cupcake Cups | $ 3,875.55 | $ 3,755.55 |
Cost of Goods Sold: Beverages | $ 5,466.50 | $ 5,681.50 |
Total COGS | $ 76,078.44 | $ 74,082.69 |
Gross Profit | $ 358,310.13 | $ 360,379.37 |
Interest Revenue | $ 89.00 | $ 65.00 |
Gross Profit Plus Interest Revenue | $ 358,399.13 | $ 360,444.37 |
Expenses | ||
Wage Expense | $ 216,719.00 | $ 217,791.00 |
Wage Tax Expense | $ 17,971.24 | $ 18,077.94 |
Medical Insurance Expense | $ 8,100.00 | $ 17,100.00 |
Auto Insurance Expense | $ 1,035.00 | $ 1,035.00 |
Interest Expense | $ 3,996.90 | $ 4,197.69 |
Electrical & Gas Service Expense | $ 1,523.20 | $ 1,708.00 |
Liability Insurance Expense | $ 3,768.40 | $ 3,693.60 |
Telecommunications Expense | $ 472.50 | $ 462.00 |
Cell Phone Service Expense | $ 912.00 | $ 933.00 |
Postage Expense | $ 139.50 | $ 135.90 |
Professional Services Expense | $ 2,070.00 | $ 2,122.50 |
Maintenance Expense | $ 1,212.00 | $ 1,132.00 |
Office Supplies Expense | $ 3,050.00 | $ 7,342.00 |
Dry Cleaning Expense | $ 398.75 | $ 416.15 |
Storefront Paper Supplies Expense | $ 778.25 | $ 1,869.00 |
Rental Expense | $ 8,752.00 | $ 4,752.00 |
Waste Services Expense | $ 150.00 | $ 150.00 |
Car Maintenance and Fuel Expense | $ 995.38 | $ 1,026.78 |
Repair Expense | $ 372.50 | $ 381.25 |
Water Expense | $ 378.75 | $ 373.75 |
Soda Machine Repair and CO2 Expense | $ 1,156.00 | $ 1,128.00 |
Interest Expense | $ 3,996.90 | $ 4,197.69 |
Credit Card Expense | $ 878.31 | $ 897.89 |
Cooking Supplies Expense | $ 12,704.00 | $ 10,858.00 |
Banking Fees | $ 445.00 | $ 445.00 |
Selling and Administrative Expenses | $ 288,978.68 | $ 298,028.45 |
$ 3,627.00 | $ 4,152.00 | |
Depreciation Expense: Plant & Property | $ 3,300.00 | $ 3,300.00 |
Total Depreciation Expense | $ 6,927.00 | $ 7,452.00 |
Total Expenses | $ 295,905.68 | $ 305,480.45 |
Earnings Before Income Taxes | $ 62,493.45 | $ 54,963.92 |
Income Tax Expense | $ 21,247.78 | $ 18,683.66 |
Net Income | $ 41,245.67 | $ 36,280.26 |
Earnings per Share | $ 0.82 | $ 0.73 |
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