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1. Construct an income statement for D'Angela's boutique using the following information: Revenue, $354,000; salaries, $56,200; COGS, $164,000; utilities, $17,800; Returns & Allowances, $4,800; payroll
1. Construct an income statement for D'Angela's boutique using the following information: Revenue, $354,000; salaries, $56,200; COGS, $164,000; utilities, $17,800; Returns & Allowances, $4,800; payroll taxes, $15,600; insurance, $9,200; rent, $36,000; depreciation expense, $8,800 and interest expense, $6,500. Assume this is not a corporation, and it the end of the year 2021. Using proper form & heading, make sure that you include gross profit, operating expenses, and net profit- see page 69. (50 points) D' Angela's Boutique Income Statement January 1, 2021, through December 31,2021 Gross Sales Less: Returns and Allowances Net Sales Cost of Goods Sold Gross Profit Operating Expenses: Salaries Expenses Rent Expenses Property Taxes Expense Depreciation Expense Utilities Expense Advertising Expense Insurance Expense Total Operating Expenses Operating Income Other Expenses: Interest Expense Net Income 2. Alex's Electronics has provided the following information as of December 31, 2021: cash, S14,576; equipment, $12,000; furniture & fixtures, $38,500; accounts payable, $15,500; notes payable, $6,500; checking account. $3,600; accumulated depreciation on equipment, $3,000, wages payable, $13,400; taxes payable, $3,750; equipment loan, $11,950; accumulated depreciation on furniture & fixtures, $14,600; accounts receivable, $5,200 and inventory, $53,800. Construct a balance sheet for Alex's Electronics. What is Alex's equity? Use proper format and labels - see page 81. (hint: remember Total Assets must equal Total Liabilities plus Owners Equity, if you know 2 of these variables you can calculate the third.) (50 points)
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