Concept Introduction:
Income Statement:
Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.
Multi step income statement:
There are two ways to present and income stamen: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.
Requirement-1:
- Direct Material used
- Factory
overhead - Total
Manufacturing costs - Total Cost of work in
process - Cost of goods manufactured
Concept Introduction:
Income Statement:
Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.
Multi step income statement:
There are two ways to present and income stamen: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.
Requirement-1:
- Direct Material used
- Factory overhead
- Total Manufacturing costs
- Total Cost of work in process
- Cost of goods manufactured
Concept Introduction:
Income Statement:
Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.
Multi step income statement:
There are two ways to present and income stamen: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.
Requirement-3:
- Net Sales
- Cost of Goods Sold
- Gross Profit
- Total Operating expenses
- Net income or loss before tax
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Chapter 18 Solutions
FUNDAMENTAL ACCOUNTING PRINCIPLES
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- Accounting 12arrow_forwardPlease provide correct answerarrow_forwardAn asset's book value is $19,000 on December 31, Year 5. The asset has been depreciated at an annual rate of $4,000 on the straight-line method. Assuming the asset is sold on December 31, Year 5 for $16,000, the company should record: a. A loss on sale of $3,000. b. Neither a gain nor a loss is recognized in this type of transaction. c. A gain on sale of $3,000. d. A gain on sale of $3,000. e. A loss on sale of $3,000.arrow_forward
- I want answerarrow_forwardOn December 31, Strike Company decided to sell one of its batting cages. The initial cost of the equipment was $215,000 with accumulated depreciation of $185,000. Depreciation has been taken up to the end of the year. The company found a company that is willing to buy the equipment for $30,000. What is the amount of the gain or loss on this transaction? a. Gain of $30,000 b. Loss of $30,000 c. No gain or loss d. Cannot be determinedarrow_forwardWhat is the level of its accounts receivable?arrow_forward
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