The Income Statement columns of the August 31 (year-end) work sheet for Ralley Company are shown here. To save time and space, the expenses have been grouped together into two categories. INCOME STATEMENTACCOUNT NAME DEBIT CREDIT Income Summary31,100.0031,130.00Sales 324,360.00Sales Returns and Allowances13,970.00 Sales Discounts7,620.00 Purchases126,210.00 Purchases Returns and Allowances 1,020.00Purchases Discounts 1,110.00Freight In8,460.00 Selling Expenses61,470.00 General Expenses51,751.00 300,581.00357,620.00Net Income57,039.00 357,620.00357,620.00From the information given, prepare an income statement for the company.Ralley CompanyIncome StatementFor Year Ended August 31, 20--(See images) Revenue from Sales:Net SalesCost of Goods Sold:Net PurchasesOperating Expenses:%24%24%24%24%24 Operating Expenses:Total Operating ExpensesNet Income%24

The question is related Income Statement for the year ended August.The details are given.Income Statement for August 31 (year end) Particulars Amount Sales 324360 Less:- Sales discount (7620) Less:- Sales Return & allowances (13970) Net Sales 302770 Less:- Cost of goods sold Purchases 126210 Less:- Purchase Return (1020) Less:- Purchase discount (1110) Add:- Freight in 8460 Cost of goods sold (132540) Gross Profit 170230 Less:- Operating Expenses Selling Expenses 61470 General Expenses 51751 (113221) Net Income 57009* *Note:- The credit side of Income summary is excess of 30 i.e. 31130 - 31000. As debit side of income summary is 31000.

Answered: The Income Statement columns of the…

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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The Income Statement columns of the August 31 (year-end) work sheet for Ralley Company are shown here. To save time and space, the expenses have been grouped together into two categories.

	INCOME STATEMENT
ACCOUNT NAME	DEBIT	CREDIT

Income Summary	31,100.00	31,130.00
Sales		324,360.00
Sales Returns and Allowances	13,970.00
Sales Discounts	7,620.00
Purchases	126,210.00
Purchases Returns and Allowances		1,020.00
Purchases Discounts		1,110.00
Freight In	8,460.00
Selling Expenses	61,470.00
General Expenses	51,751.00
	300,581.00	357,620.00
Net Income	57,039.00
	357,620.00	357,620.00

From the information given, prepare an income statement for the company.

Ralley CompanyIncome StatementFor Year Ended August 31, 20--

(See images)

Revenue from Sales:
Net Sales
Cost of Goods Sold:
Net Purchases
Operating Expenses:
%24
%24
%24
%24
%24

Operating Expenses:
Total Operating Expenses
Net Income
%24

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