Required information

Problem 14-3A Schedule of cost of goods manufactured and income statement; inventory analysis LO P2, A1

[The following information applies to the questions displayed below.]

The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company.

Advertising expense	$	26,500		Direct labor	$	675,700
Depreciation expenseOffice equipment		11,100		Income taxes expense		297,800
Depreciation expenseSelling equipment		10,700		Indirect labor		56,900
Depreciation expenseFactory equipment		35,800		Miscellaneous production costs		10,400
Factory supervision		126,600		Office salaries expense		69,000
Factory supplies used		7,800		Raw materials purchases		937,000
Factory utilities		43,000		Rent expenseOffice space		21,000
Inventories				Rent expenseSelling space		27,900
Raw materials, December 31, 2016		164,100		Rent expenseFactory building		81,200
Raw materials, December 31, 2017		189,000		Maintenance expenseFactory equipment		37,400
Work in process, December 31, 2016		17,900		Sales		4,565,700
Work in process, December 31, 2017		22,900		Sales salaries expense		399,500
Finished goods, December 31, 2016		167,900
Finished goods, December 31, 2017		136,200

Problem 14-3A Part 2

2. Prepare the companys 2017 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses.

LEONE COMPANY
Income Statement
For Year Ended December 31, 2017
Sales
Cost of goods sold
Goods available for sale	0
Cost of goods sold		0
		0
Operating expenses
Selling expenses
Total selling expenses		0
General and administrative expenses
Total general and administrative expenses		0
Total operating expenses		0
Income before taxes		0
Net income		$0