Expert answer:Accounting Assignment

Expert answer:All the information you need will be in the attachments i have left. The purpose of this assignment is to help you become familiar with the parts of the multiple‐step income statement.
purpose_of_assignment.docx

acc290wk3simon.xlsx

Unformatted Attachment Preview

Purpose of Assignment
The purpose of this assignment is to help you become familiar with the parts of the multiple‐step
income statement.
Assignment Steps
Scenario: An inexperienced accountant prepared this condensed income statement for Simon
Company, a retail firm that has been in business for a number of years.
SIMON COMPANY
Income Statement
For the Year Ended December 31, 2017
Revenues
Net sales
$850,000
Other revenues
22,000
872,000
Cost of goods sold
555,000
Gross profit
317,000
Operating expenses
Selling expenses
109,000
Administrative expenses
103,000
212,000
Net earnings
$105,000
As an experienced, knowledgeable accountant, you review the statement and determine the
following facts:
1. Net sales consist of: sales $911,000, less freight-out on merchandise sold $33,000, and
sales returns and allowances $28,000.
2. Other revenues consist of sales discounts $18,000 and rent revenue $4,000.
3. 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.
4. 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.
Use and complete the Excel template in Student Materials to prepare a correct income statement in
the multi-step income statement format. Assume a 25% tax rate. Give a brief explanation of the
inconsistencies found in the inexperienced accountant’s income statement as compared to your
income statement.
ACC 290 WEEK 3 ASSIGNMENT
SIMON COMPANY
STUDENT NAME:
SIMON COMPANY
Income Statement
For the Year Ended December 31, 2017
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a “?” .
Sales
Sales revenue
Less: Sales returns and allowances
Sales discounts
Net sales
Cost of goods sold
Gross profit
Operating expenses
Salaries and wages expense
Freight-out
Rent Expense
Advertising expense
Utilities expense
Depreciation expense
Total operating expenses
Income from operations
Other revenues and gains
Rent revenue
Other expenses and losses
Interest expense
Income before income taxes
Income tax expense
Net Income
Value
Value
Value
?
?
Value
?
Value
Value
Value
Value
Value
Value
?
?
Value
Value
?
Value
?
Hint: net income is $67,500
Give a brief explanation of the inconsistencies found in the inexperienced accountant’s income statement as compa
WRITE YOUR RESPONSE HERE:
me statement as compared to your income statement.
…
Purchase answer to see full
attachment

How it works

1. Paste your instructions in the instructions box. You can also attach an instructions file
2. Select the writer category, deadline, education level and review the instructions 
3. Make a payment for the order to be assignment to a writer
4.  Download the paper after the writer uploads it 

Will the writer plagiarize my essay?

You will get a plagiarism-free paper and you can get an originality report upon request.

Is this service safe?

All the personal information is confidential and we have 100% safe payment methods. We also guarantee good grades