Answered: retained earnings statement, a balance…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

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Please see the picture below. I need help making a retained earnings statement, a balance statement, a comprehensive income statement and calculate the profit margin and the gross profit rate for the income statement I've included. Note that I have included the Income statement below. Note that I have included all the information that was made available to me. I need this asap.

Big John's Merch

Income statement

For the month ending February 28, 2022

Sales - $50,000

Costs of goods sold- $12,500

Operating expenses

Salaries- $2,500

Rent- $800

Advertising- $500

Depreciation- $300

Utilities- $75

Revenues and Expenses

Internet revenues- $2,000

Internet expense- $150

Insurance expense- $400

Other revenues- $3,500

Big John's Merchandising Company
Income Statement
For the Month Ending February 28,2022
Particular
Debit ($)
Credit ($)
Sales Revenue
50,000
Less: Cost of Goods Sold
(12,500)
Gross Margin
37,500
Less: Operating Expenses
Salaries and Wages Expense
2,500
Rent Expense
800
500
Advertising Expense
300
Depreciation
75
Utilities
4,175
Total Operating Expense
33,325
Operating Income
Add: Other Revenue and Expenses
2,000
Internet Revenue
(150)
Internet Expenses
(400)
Insurance Expenses
3,500
4,950
Other Revenue
Total of Other Revenue and Expenses
38,275
Net Income Before Taxes
(0)
Less: Tax Expenses
38,275
Net Income
Row

Expert Solution

Step 1

Note: Preparation of balance sheet requires the trial balance or previous year balances and their adjustments. It cannot be prepared from a mere income statement. Therefore, I have attempted the remaining questions.

Big John's Merchandise company

Statement of retained earnings

for the year ended March 31, 2022

Particulars	Amount($)
Retained earnings at 1st April, 2021	-
Add: Net income for the year 2021-2022	38275
Less: Dividends to shareholders	-
Retained earnings at	38275

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