e8 0 omework Help Save Required information The following in

e8 0 omework Help Save Required information The following information applies to the questions displayed below. The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company. Advereising expesse Depreciation expense office equipent Depreciatlon expecso-Selling equipmont Depreolation exesse-Factory equipeent Tactory superviaion Factory supplies used Factory utilities tnventor Lies 29.800 Direct labor 236,300 8,700 Ineone taxes expense 2,900 Miscellaneous prodaction costa 8,50 ay materials parchases 61,000 956,000 30,000 27,700 42.000 Reat expense-office space Rent oxpena-Selling space Rau materials, Decenber 31, 2016 Rav naterials, Decenber 31, 2017 Work in procests Work in process, Decenber 31, 2017 Finiahed goods, Decenber 31, 2016 riniahed goods, Decenber 31, 2017 166,900 Rent expenso-Factory baiiding 184,000 Maintenance expense-Factory equipment 9,700 485 500 393.00 24,000 Sales salaries expense 2. Prepare the company\'s 2017 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses. LEONE COMPANY Income Statement For Yyear Ended December 31, 2017 4,485 500 Cost of goods sold 164.400

Solution

Answer:

LEON COMPANY

Income Statement

For Year Ended December 31, 2017

Sales

$4,485,000

Cost of goods sold

Cost of goods manufactured (w.n-1)

$2,027,100

Finished goods inventory, December 31, 2016

164,400

Goods available for sale

2,191,500

Less: Finished goods inventory, December 31, 2017

-138,500

Cost of goods sold

2,053,000

Gross profit from sales

2,432,000

Operating expenses

Selling expenses

Depreciation expense—Selling equipment

11,000

Rent expense—Selling space

27,700

Sales salaries expense

393,800

Advertising expense

29,800

Total selling expenses

462,300

General and administrative expenses

Rent expense—Office space

81,800

Office salaries expense

61,000

Depreciation expense—Office equipment

8,700

Total general and administrative expenses

151,500

Total operating expenses

613,800

Income before state and federal taxes

1,818,200

Income taxes expense

236,300

Net income

$1,581,900

Working notes for the answer:

W.N-1

Manufacturing Statement

For Year Ended December 31, 2017

Direct materials

Raw materials inventory, December 31, 2016

$166,900

Raw materials purchases

956,000

Raw materials available for use

1,122,900

Less: Raw materials inventory, December 31, 2017

-184,000

Direct materials used

$938,900

Direct labor

699,000

Factory overhead

Factory supervision

121,700

Factory supplies used

8,500

Factory utilities

42,000

Maintenance expense—Factory equipment

39,700

Rent expense—Factory building

81,800

Depreciation expense—Factory equipment

32,900

Indirect labor

56,900

Miscellaneous production costs

10,200

Total factory overhead costs

393,700

Total manufacturing costs

2,031,600

Add: Goods in process inventory, December 31, 2016

19,500

Total cost of goods in process

2,051,100

Less: Goods in process inventory, December 31, 2017

24,000

Cost of goods manufactured

$2,027,100

2

As image is not that much clear so i have double Zoomed in but it might be possible that some figure might change but calculation part are correct

LEON COMPANY
Income Statement
For Year Ended December 31, 2017
Sales		$4,485,000
Cost of goods sold
Cost of goods manufactured (w.n-1)	$2,027,100
Finished goods inventory, December 31, 2016	164,400
Goods available for sale	2,191,500
Less: Finished goods inventory, December 31, 2017	-138,500
Cost of goods sold		2,053,000
Gross profit from sales		2,432,000
Operating expenses
Selling expenses
Depreciation expense—Selling equipment	11,000
Rent expense—Selling space	27,700
Sales salaries expense	393,800
Advertising expense	29,800
Total selling expenses		462,300
General and administrative expenses
Rent expense—Office space	81,800
Office salaries expense	61,000
Depreciation expense—Office equipment	8,700
Total general and administrative expenses		151,500
Total operating expenses		613,800
Income before state and federal taxes		1,818,200
Income taxes expense		236,300
Net income		$1,581,900