Accounting Assignment

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

Don't use plagiarized sources. Get Your Custom Essay on
Accounting Assignment
Just from $13/Page
Order Essay

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

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency

Order your essay today and save 15% with the discount code ESSAYHELP