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Would greatly appreciate the help with the incorrect cells Easley-O Ice Equlpment sells furnlture end technology solutlons to consumers end to buslnesses Most consumers pey
Would greatly appreciate the help with the incorrect cells
Easley-O Ice Equlpment sells furnlture end technology solutlons to consumers end to buslnesses Most consumers pey for thelr purchases wlth credlt cards end buslness customers moke purchases on open account vvllh terms 1/10, net 30. Costs of furnlture Inventory purchases heve generally been rlslng and costs of computer Inventory purchases have generally been decllnlng_ The compony's Income tax rate Is 20 percent Cosey Easley, the general manager, was partlculorly Interested In the financlal statement effects of lhe followlng facts related to first quarter operatlons. a. Credlt card soles (dlscount 2 percent) were $38,500_ O. Sales on account were $114,000. The company expects one-half of the accounts to be pold wlthln the dlscount perlod_ c. The company computed cost of goods sold for the transectlons In (a) end (O) above under FIFO and LIFO for Its two product 'Ines and chose the method for each product that mlnlmlzes Income taxes: Furnlture Computer equlpment $ 28.400 33,400 LIFO S 31oo 29,400 d. Durlng the perlod. the compony wrote off Sl,340 worth of bad debts. e. At the end ofthe perlod, the compony estlmated that IS percent of gross soles on account would prove to be uncollectlble_ f. Costs to dellver furnlture to customers were S6,40CL g. Rent. utllltles, salarles, end other operatlng expenses were S23,400. h. At the end of the perlod, the company dlscovered that the net reallzoOle value of endlng Inventory was $1,140 less than orlglnal cost. Requlred: Complete the followlng table. Indlcatlng the effects of each transactlon on each Income statement llne Item or subtotal Ilsled_ Indlcate the amount and use mlnus slgn for a decrease, leave the space blank for no effect (Hlnt: Remember any Item that effects revenues or expenses also affects Income Tax Expense by the amount of the revenue or expense tlmes the Income tax rote.) When you are done, sum ecross the columns to produce Easley-O'Hare's Income statement for the quarter Note: Deductlble amounts should be entered wlth a mlnus slgn. Answer is not complete. ransacti Net sales Cost of goods sold Gross profit Selling, general, and administrative expenses Income before income taxes Income tax expense Net income 37.730 113,430 e 64,800 1,340 Income 151.1609 1,140 1,7109 6,400 e 23,400
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