Required informationProblem 18-3A Schedule of cost of goods manufactured and income statement; inventory analysis LO P2, A1Skip to question [The following information applies to the questions displayed below.] The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company. Advertising expense$34,200 Direct labor$671,700 Depreciation expense—Office equipment 9,300 Income taxes expense 278,800 Depreciation expense—Selling equipment 9,900 Indirect labor 57,600 Depreciation expense—Factory equipment 38,200 Miscellaneous production costs 10,700 Factory supervision 121,800 Office salaries expense 73,000 Factory supplies used 7,700 Raw materials purchases 953,000 Factory utilities 36,000 Rent expense—Office space 21,000 Inventories Rent expense—Selling space 25,200 Raw materials, December 31, 2018 159,200 Rent expense—Factory building 76,500 Raw materials, December 31, 2019 185,000 Maintenance expense—Factory equipment 38,700 Work in process, December 31, 2018 16,600 Sales 4,586,800 Work in process, December 31, 2019 20,000 Sales salaries expense 397,900 Finished goods, December 31, 2018 161,700 Finished goods, December 31, 2019 141,000 ### Income Statement Details**Total Selling Expenses:** - Amount: $467,200**General and Administrative Expenses:**1. **Depreciation Expense—Office Equipment:** - Amount: $9,3002. **Rent Expense—Office Space:** - Amount: $21,000**Total General and Administrative Expenses:** - Amount: $30,300**Total Operating Expenses:** - Amount: $497,500**Income Before Taxes:** - Amount: $(497,500)**Income Taxes Expense:** - Amount: Not specified**Net Income:** - Amount: $(497,500)### AnalysisThis financial statement section outlines various expenses and resulting net income. Key points include significant selling and administrative costs, resulting in a negative income before taxes, indicating a financial loss for the period. ### Income Statement Preparation**2. Task:**Prepare the company's 2019 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses.---#### Leone Company**Income Statement** *For the Year Ended December 31, 2019*- **Sales** - **Cost of Goods Sold** - Cost of goods manufactured - Finished goods inventory, December 31, 2018 **Goods available for sale** - Less: Finished goods inventory, December 31, 2019 - **Cost of goods sold**: 0- **Gross Profit from Sales**: 0- **Operating Expenses** - **Selling Expenses** - Advertising Expense: $34,200 - Depreciation Expense—Selling Equipment: $9,900 - Rent Expense—Selling Space: $25,200 - Sales Salaries Expense: $397,900*Note: Missing values should be calculated based on available data.*

Answered: Image /qna-images/answer/354af561-21d9-440a-8d7e-56af8fbc8a20.jpg

Problem 18-3A Schedule of cost of goods manufactured and income statement; inventory analysis LO P2, A1 Skip to question [The following information applies to the questions displayed below.] The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company. Advertising expense $ 34,200 Direct labor $ 671,700 Depreciation expense—Office equipment 9,300 Income taxes expense 278,800 Depreciation expense—Selling equipment 9,900 Indirect labor 57,600 Depreciation expense—Factory equipment 38,200 Miscellaneous production costs 10,700 Factory supervision 121,800 Office salaries expense 73,000 Factory supplies used 7,700 Raw materials purchases 953,000 Factory utilities 36,000 Rent expense—Office space 21,000 Inventories Rent expense—Selling space 25,200 Raw materials, December 31, 2018 159,200 Rent expense—Factory building 76,500 Raw materials, December 31, 2019 185,000 Maintenance expense—Factory equipment 38,700 Work in process, December 31, 2018 16,600 Sales 4,586,800 Work in process, December 31, 2019 20,000 Sales salaries expense 397,900 Finished goods, December 31, 2018 161,700 Finished goods, December 31, 2019 141,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Required information

Problem 18-3A Schedule of cost of goods manufactured and income statement; inventory analysis LO P2, A1

Skip to question

[The following information applies to the questions displayed below.]

The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company.


Advertising expense	$	34,200	Direct labor	$	671,700
Depreciation expense—Office equipment		9,300	Income taxes expense		278,800
Depreciation expense—Selling equipment		9,900	Indirect labor		57,600
Depreciation expense—Factory equipment		38,200	Miscellaneous production costs		10,700
Factory supervision		121,800	Office salaries expense		73,000
Factory supplies used		7,700	Raw materials purchases		953,000
Factory utilities		36,000	Rent expense—Office space		21,000
Inventories			Rent expense—Selling space		25,200
Raw materials, December 31, 2018		159,200	Rent expense—Factory building		76,500
Raw materials, December 31, 2019		185,000	Maintenance expense—Factory equipment		38,700
Work in process, December 31, 2018		16,600	Sales		4,586,800
Work in process, December 31, 2019		20,000	Sales salaries expense		397,900
Finished goods, December 31, 2018		161,700
Finished goods, December 31, 2019		141,000

### Income Statement Details

**Total Selling Expenses:**
- Amount: $467,200

**General and Administrative Expenses:**

1. **Depreciation Expense—Office Equipment:**
- Amount: $9,300

2. **Rent Expense—Office Space:**
- Amount: $21,000

**Total General and Administrative Expenses:**
- Amount: $30,300

**Total Operating Expenses:**
- Amount: $497,500

**Income Before Taxes:**
- Amount: $(497,500)

**Income Taxes Expense:**
- Amount: Not specified

**Net Income:**
- Amount: $(497,500)

### Analysis

This financial statement section outlines various expenses and resulting net income. Key points include significant selling and administrative costs, resulting in a negative income before taxes, indicating a financial loss for the period.

### Income Statement Preparation

**2. Task:**
Prepare the company's 2019 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses.

---

#### Leone Company

**Income Statement**
*For the Year Ended December 31, 2019*

- **Sales**

- **Cost of Goods Sold**
- Cost of goods manufactured
- Finished goods inventory, December 31, 2018

**Goods available for sale**

- Less: Finished goods inventory, December 31, 2019
- **Cost of goods sold**: 0

- **Gross Profit from Sales**: 0

- **Operating Expenses**

- **Selling Expenses**
- Advertising Expense: $34,200
- Depreciation Expense—Selling Equipment: $9,900
- Rent Expense—Selling Space: $25,200
- Sales Salaries Expense: $397,900

*Note: Missing values should be calculated based on available data.*

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 5 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

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.