previous question On January 1, 20X1, a company financed the sale of equipment and recorded a note receivable for the sale. The account recorded the sale at the face value and coupon rate in the below income statement Notes receivable (Face value) Tax rate Note receivable information: 430,000 30% Term of the note Coupon rate Market rate 8 years 1.2% 5.6% The note is due in equal annual payments of principle and interest. Incorrect income statement, for the year ended December 31, 20X1 Sales Interest revenue Cost of goods sold Expenses Pretax income Tax expense $1,832,200 5,160 826.300 657.800 353,260 105 978 $247.282 Net income What is correct amount of sales that should be reported on the income statement?
previous question On January 1, 20X1, a company financed the sale of equipment and recorded a note receivable for the sale. The account recorded the sale at the face value and coupon rate in the below income statement Notes receivable (Face value) Tax rate Note receivable information: 430,000 30% Term of the note Coupon rate Market rate 8 years 1.2% 5.6% The note is due in equal annual payments of principle and interest. Incorrect income statement, for the year ended December 31, 20X1 Sales Interest revenue Cost of goods sold Expenses Pretax income Tax expense $1,832,200 5,160 826.300 657.800 353,260 105 978 $247.282 Net income What is correct amount of sales that should be reported on the income statement?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
cvgcfdxrrrrrr

Transcribed Image Text:The below information is the same as the previous question.
On January 1, 20X1, a company financed the sale of equipment and recorded a note receivable for the sale. The accountant inappropriately
recorded the sale at the face value and coupon rate in the below income statement.
Notes receivable (Face value)
Tax rate
Note receivable information:
430,000
30%
Term of the note
Coupon rate
Market rate
8 years
1.2%
5.6%
The note is due in equal annual payments of principle and interest
Incorrect income statement, for the year ended December 31, 20X1
Sales
Interest revenue
Cost of goods sold
Expenses
Pretax income
Tax expense
Net income
$1,832,200
5,160
826,300
657.800
353,260
105.978
$247,282
What is correct amount of sales that should be reported on the income statement?
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education