Required information [The following information applies to the questions displayed below.] The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company. Advertising expense $ 34,100 Direct labor $ 686,200 Depreciation expenseOffice equipment 10,000 Income taxes expense 264,500 Depreciation expenseSelling equipment 9,500 Indirect labor 55,300 Depreciation expenseFactory equipment 30,300 Miscellaneous production costs 10,700 Factory supervision 128,400 Office salaries expense 66,000 Factory supplies used 8,300 Raw materials purchases 999,000 Factory utilities 37,000 Rent expenseOffice space 29,000 Inventories Rent expenseSelling space 28,300 Raw materials, December 31, 2018 160,500 Rent expenseFactory building 83,000 Raw materials, December 31, 2019 185,000 Maintenance expenseFactory equipment 39,400 Work in process, December 31, 2018 18,100 Sales 4,546,600 Work in process, December 31, 2019 18,500 Sales salaries expense 395,300 Finished goods, December 31, 2018 169,900 Finished goods, December 31, 2019 139,000 2. Prepare the companys 2019 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses.

Required information [The following information applies to the questions displayed below.) The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company. Advertising expense Depreciation expense-Office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used Factory utilities Inventories Raw materials, December 31, 2018 Raw materials, December 31, 2019 Work in process, December 31, 2018 Work in process, December 31, 2019 Finished goods, December 31, 2018 Finished goods, December 31, 2019 $ 34, 100 Direct labor 10,000 Income taxes expense 9,500 Indirect labor 30,300 Miscellaneous production costs 128,400 Office salaries expense Raw materials purchases Rent expense-office space Rent expense-Selling space 160,500 Rent expense-Factory building 185,000 Maintenance expense-Factory equipment 18,100 Sales 18,500 Sales salaries expense 169,900 139,000 $ 686,200 264,500 55,300 10,700 66,000 999,000 29,000 28,300 83,000 39, 400 4,546,600 395,300 2. Prepare the company's 2019 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, 2019 Cost of goods sold Goods available for sale Cost of goods sold Operating expenses Selling expenses Total selling expenses General and administrative expenses Total general and administrative expenses Total operating expenses Income before taxes Net income