Presented below is information for Ivanhoe Co. for the month of January 2022. Cost of goods sold $221,000 Rent expense $33,500 Freight-out 9,700 Sales discounts 8,600 Insurance expense 14,600 Sales returns and allowances 20,000 Salaries and wages expense 63,400 Sales revenue 392,500 Income tax expense 4,300 Other comprehensive income (net of $400 tax) 2,000. Prepare an income statement using the multi-step format.

Question

Business

Quinten Contreras

22 April, 03:29

Presented below is information for Ivanhoe Co. for the month of January 2022. Cost of goods sold $221,000 Rent expense $33,500 Freight-out 9,700 Sales discounts 8,600 Insurance expense 14,600 Sales returns and allowances 20,000 Salaries and wages expense 63,400 Sales revenue 392,500 Income tax expense 4,300 Other comprehensive income (net of $400 tax) 2,000. Prepare an income statement using the multi-step format.

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Michael Stephens · Answer 1

Sales Revenues 392,500

Sales Returns (20,000)

Freight outs (9,700)

Net Sales 362,800‬

Cost of good sold (221,000)

Gross profit 141,800

Operating Expenses

Rent expense (33,500)

nsurance expense (14,600)

Salaries and wages expense (63,400)

Operating Income 30,300‬

Income tax expense (4,300)

Net Income 26,000

Other comprehensive income 2,000

Comprehensive Income 28,000

Explanation:

the OCI is listed after-taxed thus do not change the total income tax expense

comprehensive income will be the sum of both concepts net income and OCI