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FAIRHAVEN INC. Income Statement For Year Ended June 30, 2017 Sales $1,059,000 Cost of goods sold 648,000 Gross profit 411,000 Operating expenses Depreciation expense $ 89,000 Other expenses 105,000 Total operating expenses 194,000 Other gains (losses) 217,000 Gain on sale of equipment 7,300 Income before taxes 224,300 Income taxes expense 68,660 Net income $ 155,640 Additional Information a. A $43,000 note payable is retired at its $43,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $87,000 cash. d. Received cash for the sale of equipment that had cost $72,000, yielding a $7,300 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit. Requirement General Journal General Ledner Trial Balance Direct Method Indirect Method < Prev 1 of 1 Next >

          FAIRHAVEN INC.
Income Statement
For Year Ended June 30, 2017
Sales
$1,059,000
Cost of goods sold
648,000
Gross profit
411,000
Operating expenses
Depreciation expense
$ 89,000
Other expenses
105,000
Total operating expenses
194,000
Other gains (losses)
217,000
Gain on sale of equipment
7,300
Income before taxes
224,300
Income taxes expense
68,660
Net income
$ 155,640
Additional Information
a. A $43,000 note payable is retired at its $43,000 carrying (book) value in exchange for cash.
b. The only changes affecting retained earnings are net income and cash dividends paid.
c. New equipment is acquired for $87,000 cash.
d. Received cash for the sale of equipment that had cost $72,000, yielding a $7,300 gain.
e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
f. All purchases and sales of inventory are on credit.
Requirement
General
Journal
General
Ledner
Trial Balance Direct Method
Indirect
Method
< Prev
1 of 1
Next >

FAIRHAVEN INC.
Income Statement
For Year Ended June 30, 2017
Sales
1,059,000
Cost of goods sold
648,000
Gross profit
411,000
Operating expenses
Depreciation expense 89,000
Other expenses
105,000
Total operating expenses
194,000
Other gains (losses)
217,000
Gain on sale of equipment
7,300
Income before taxes
224,300
Income taxes expense
68,660
Net income
155,640
Additional Information
a. A43,000 note payable is retired at its 43,000 carrying (book) value in exchange for cash.
b. The only changes affecting retained earnings are net income and cash dividends paid.
c. New equipment is acquired for87,000 cash.
d. Received cash for the sale of equipment that had cost 72,000, yielding a7,300 gain.
e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
f. All purchases and sales of inventory are on credit.
Requirement
General
Journal
General
Ledner
Trial Balance Direct Method
Indirect
Method
< Prev
1 of 1
Next >

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