Parker Pool Supply, Inc. reported the following items for the year ended December 31, 2019:
Posted: Sat Aug 07, 2021 7:13 am
Wages and salary expense $527,000
Cost of goods sold 1,124,000
Rent expense 395,000
Sales revenue 2,564,000
Interest expense 30,000
Income tax expense 121,000
Accounts receivable 27,000
Prepare an income statement for the year ended December 31, 2019.
Answer:
Parker Pool Supply, Inc.
Income Statement
For the Year Ended December 31, 2019
Revenue:
Sales revenue $2,564,000
Total revenues $2,564,000
Expenses:
Cost of goods sold 1,124,000
Wages and salary expense 527,000
Rent expense 395,000
Interest expense 30,000
Total expenses 2,076,000
Pretax income 488,000
Income tax expense 121,000
Net income $367,000
Accounts receivable of $27,000 would appear on the balance sheet, not the income statement.
Difficulty: 2 Medium
Topic: Financial statements-Income statement
Learning Objective: 01-01 Recognize the information conveyed in each of the four basic
financial statements and the way that it is used by different decision makers (investors, creditors,
and managers).
Cost of goods sold 1,124,000
Rent expense 395,000
Sales revenue 2,564,000
Interest expense 30,000
Income tax expense 121,000
Accounts receivable 27,000
Prepare an income statement for the year ended December 31, 2019.
Answer:
Parker Pool Supply, Inc.
Income Statement
For the Year Ended December 31, 2019
Revenue:
Sales revenue $2,564,000
Total revenues $2,564,000
Expenses:
Cost of goods sold 1,124,000
Wages and salary expense 527,000
Rent expense 395,000
Interest expense 30,000
Total expenses 2,076,000
Pretax income 488,000
Income tax expense 121,000
Net income $367,000
Accounts receivable of $27,000 would appear on the balance sheet, not the income statement.
Difficulty: 2 Medium
Topic: Financial statements-Income statement
Learning Objective: 01-01 Recognize the information conveyed in each of the four basic
financial statements and the way that it is used by different decision makers (investors, creditors,
and managers).