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As an experienced accountant you review the income statement and determine the following facts: 1) Net sales of $819, 900, less freight-out on merchandise sold
As an experienced accountant you review the income statement and determine the following facts: 1) Net sales of $819, 900, less freight-out on merchandise sold $29, 700 and sales returns and allowances $25, 200 2) Other revenues consist of sales discounts $16, 200 and rent revenues $3,600 3) Selling expenses consist of salespersons salaries $72,000, depreciation on equipment $9,000, advertising $11,700, and sales commissions $5,400. The commissions represent commissions paid. At December 31, $2,700 of commissions have been earned by salespersons but have not been paid. All compensations should be recorded as Saleries and Wages Expense. 4) Administrative expenses consist of office salaries $42, 300, dividens $16, 200, utilities $10,800, interest expense $1,800, and rent expense $21, 600, which includes prepayments totaling $5,400 for the first quarter of 2018. Prepare a correct detailed multiple-step income statement. Assume a 25% tax rate (list other revenues before other expenses. Round answers to 0 decimal places, e.g. 5125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
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