No work shown required These items are taken from the financial statements of Drew League II Corporation for 2020.$33,000Retained earnings (beginning of year)Utilities expense2,000Equipment56,000Accounts payable15,300Cash15,900Salaries and wages payable3,000Common stock13,000Dividends14,000Service revenue78,000Prepaid insuranceMaintenance and repairs expense3,5001,800Depreciation expense3,300Accounts receivable14,200Insurance expense2,200Salaries and wages expense47,000Accumulated depreciation-equipment17,600InstructionsPrepare an income statement as of December 31, 2020. ANSWER THE FOLLOWING QUESTION: Net income equals American Importers reports net income of $60,000 and cost of goods sold of $540,000. If the company's gross profit rate was 40%, net sales wereO A. $1,410,000O B. $990,000.O C. $1,350,000O D. $900,000

Calculation of net income and net sale of above requirement are as follows

These items are taken from the financial statements of Drew League II Corporation for 2020. $33,000 2,000 Retained earnings (beginning of year) Utilities expense Equipment Accounts payable 56,000 15,300 Cash 15,900 Salaries and wages payable 3,000 13,000 14,000 78,000 Common stock Dividends Service revenue Prepaid insurance Maintenance and repairs expense 3,500 1,800 Depreciation expense Accounts receivable 3,300 14,200 Insurance expense 2,200 Salaries and wages expense 47,000 Accumulated depreciation-equipment 17,600

These items are taken from the financial statements of Drew League II Corporation for 2020. $33,000 2,000 Retained earnings (beginning of year) Utilities expense Equipment Accounts payable 56,000 15,300 Cash 15,900 Salaries and wages payable 3,000 13,000 14,000 78,000 Common stock Dividends Service revenue Prepaid insurance Maintenance and repairs expense 3,500 1,800 Depreciation expense Accounts receivable 3,300 14,200 Insurance expense 2,200 Salaries and wages expense 47,000 Accumulated depreciation-equipment 17,600

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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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

No work shown required

These items are taken from the financial statements of Drew League II Corporation for 2020.
$33,000
Retained earnings (beginning of year)
Utilities expense
2,000
Equipment
56,000
Accounts payable
15,300
Cash
15,900
Salaries and wages payable
3,000
Common stock
13,000
Dividends
14,000
Service revenue
78,000
Prepaid insurance
Maintenance and repairs expense
3,500
1,800
Depreciation expense
3,300
Accounts receivable
14,200
Insurance expense
2,200
Salaries and wages expense
47,000
Accumulated depreciation-equipment
17,600
Instructions
Prepare an income statement as of December 31, 2020. ANSWER THE FOLLOWING QUESTION: Net income equals

American Importers reports net income of $60,000 and cost of goods sold of $540,000. If the company's gross profit rate was 40%, net sales were
O A. $1,410,000
O B. $990,000.
O C. $1,350,000
O D. $900,000

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