\n<\/p>\n

<\/p>\n

Purpose of Assignment<\/strong> <\/strong><\/p>\n

The purpose of this assignment is to help you become familiar with the parts of the multiple\u2010step income statement. <\/p>\n

Assignment Steps<\/strong> <\/strong><\/p>\n

Resources:<\/strong> Financial Accounting: Tools for Business Decision Making<\/em> <\/strong><\/p>\n

Scenario: <\/strong>An inexperienced accountant prepared this condensed income statement for Simon Company, a retail firm that has been in business for a number of years.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n
SIMON COMPANY<\/strong><\/p>\n
Income Statement
For the Year Ended December 31, 2017<\/strong><\/p>\n<\/td>\n
<\/td>\n<\/tr>\n<\/thead>\n
\n
Revenues<\/p>\n<\/td>\n
<\/td>\n<\/tr>\n
\n
Net sales<\/p>\n<\/td>\n
\n
$850,000<\/p>\n<\/td>\n<\/tr>\n
\n
Other revenues<\/p>\n<\/td>\n
\n
22,000<\/p>\n<\/td>\n<\/tr>\n
<\/td>\n \n
872,000<\/p>\n<\/td>\n<\/tr>\n
\n
Cost of goods sold<\/p>\n<\/td>\n
\n
555,000<\/p>\n<\/td>\n<\/tr>\n
\n
Gross profit<\/p>\n<\/td>\n
\n
317,000<\/p>\n<\/td>\n<\/tr>\n
\n
Operating expenses<\/p>\n<\/td>\n
<\/td>\n<\/tr>\n
\n
Selling expenses<\/p>\n<\/td>\n
\n
109,000<\/p>\n<\/td>\n<\/tr>\n
\n
Administrative expenses<\/p>\n<\/td>\n
\n
103,000<\/p>\n<\/td>\n<\/tr>\n
<\/td>\n \n
212,000<\/p>\n<\/td>\n<\/tr>\n
\n
Net earnings<\/p>\n<\/td>\n
\n
$105,000<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
As an experienced, knowledgeable accountant, you review the statement and determine the following facts:<\/p>\n
\n
Net sales consist of: sales $911,000, less freight-out on merchandise sold $33,000, and sales returns and allowances $28,000.<\/li>\n
Other revenues consist of sales discounts $18,000 and rent revenue $4,000.<\/li>\n
Selling expenses consist of salespersons’ salaries $80,000, depreciation on equipment $10,000, advertising $13,000, and sales commissions $6,000. The commissions represent commissions paid. At December 21, $3,000 of commissions have been earned by salespersons but have not been paid. All compensation should be recorded as Salaries and Wages Expense.<\/li>\n
Administrative expenses consist of office salaries $47,000, dividends $18,000, utilities $12,000, interest expense $2,000, and rent expense $24,000, which includes prepayments totaling $6,000 for the first quarter of 2018. <\/li>\n<\/ol>\n
Prepare<\/strong> a detailed multi-step income statement with a brief explanation of 500 words. Assume a 25% tax rate. <\/strong><\/p>\n
Show<\/strong> your work on the Excel^{\u00ae<\/sup> spreadsheet and submit with your explanation.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"}
Purpose of Assignment The purpose of this assignment is to help you become familiar with the parts of the multiple\u2010step income statement. Assignment Steps Resources: Financial Accounting: Tools for Business Decision Making Scenario: An inexperienced accountant prepared this condensed income statement for Simon Company, a retail firm that has been in business for a number […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_joinchat":[]},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/177981"}],"collection":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/comments?post=177981"}],"version-history":[{"count":0,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/177981\/revisions"}],"wp:attachment":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/media?parent=177981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/categories?post=177981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/tags?post=177981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}

\n SIMON COMPANY<\/strong><\/p>\n Income Statement For the Year Ended December 31, 2017<\/strong><\/p>\n<\/td>\n	<\/td>\n<\/tr>\n<\/thead>\n
\n Revenues<\/p>\n<\/td>\n	<\/td>\n<\/tr>\n
\n Net sales<\/p>\n<\/td>\n	\n $850,000<\/p>\n<\/td>\n<\/tr>\n
\n Other revenues<\/p>\n<\/td>\n	\n 22,000<\/p>\n<\/td>\n<\/tr>\n
<\/td>\n	\n 872,000<\/p>\n<\/td>\n<\/tr>\n
\n Cost of goods sold<\/p>\n<\/td>\n	\n 555,000<\/p>\n<\/td>\n<\/tr>\n
\n Gross profit<\/p>\n<\/td>\n	\n 317,000<\/p>\n<\/td>\n<\/tr>\n
\n Operating expenses<\/p>\n<\/td>\n	<\/td>\n<\/tr>\n
\n Selling expenses<\/p>\n<\/td>\n	\n 109,000<\/p>\n<\/td>\n<\/tr>\n
\n Administrative expenses<\/p>\n<\/td>\n	\n 103,000<\/p>\n<\/td>\n<\/tr>\n
<\/td>\n	\n 212,000<\/p>\n<\/td>\n<\/tr>\n
\n Net earnings<\/p>\n<\/td>\n	\n $105,000<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n As an experienced, knowledgeable accountant, you review the statement and determine the following facts:<\/p>\n \n Net sales consist of: sales $911,000, less freight-out on merchandise sold $33,000, and sales returns and allowances $28,000.<\/li>\n Other revenues consist of sales discounts $18,000 and rent revenue $4,000.<\/li>\n Selling expenses consist of salespersons’ salaries $80,000, depreciation on equipment $10,000, advertising $13,000, and sales commissions $6,000. The commissions represent commissions paid. At December 21, $3,000 of commissions have been earned by salespersons but have not been paid. All compensation should be recorded as Salaries and Wages Expense.<\/li>\n Administrative expenses consist of office salaries $47,000, dividends $18,000, utilities $12,000, interest expense $2,000, and rent expense $24,000, which includes prepayments totaling $6,000 for the first quarter of 2018. <\/li>\n<\/ol>\n Prepare<\/strong> a detailed multi-step income statement with a brief explanation of 500 words. Assume a 25% tax rate. <\/strong><\/p>\n Show<\/strong> your work on the Excel^{\u00ae<\/sup> spreadsheet and submit with your explanation.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"} Purpose of Assignment The purpose of this assignment is to help you become familiar with the parts of the multiple\u2010step income statement. Assignment Steps Resources: Financial Accounting: Tools for Business Decision Making Scenario: An inexperienced accountant prepared this condensed income statement for Simon Company, a retail firm that has been in business for a number […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_joinchat":[]},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/177981"}],"collection":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/comments?post=177981"}],"version-history":[{"count":0,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/177981\/revisions"}],"wp:attachment":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/media?parent=177981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/categories?post=177981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/tags?post=177981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}