Question 3 of 5
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The following balances were taken from the books of Skysong Corp on December 31, 2025
Interest revenue
$87,250
Accumulated depreciation-equipment $41.250
Cash
52,250
Accumulated depreciation-buildings
29,250
Sales revenue
1,381.250
Notes receivable
156.250
Accounts receivable
151,250
Selling expenses
195.250
Prepaid insurance
21,250
Accounts payable
171,250
Sales returns and allowances
151,250
Bonds payable
101.250
Allowance for doubtful accounts
8.250
Administrative and general expenses
98.250
Sales discounts
46,250
Accrued liabilities
33,250
Land
101,250
Interest expense
61,250
Equipment
201.250
Notes payable
101.250
Buildings
141,250
Loss from earthquake damage
151.250
Cost of goods sold
622,250
Common stock
501,250
Retained earnings
22,250
SKYSONG CORP.
Income Statement
For the Year Ended December 31, 2025
Revenue
Sales Revenue
Less
Sales Discounts
Sales Returns and Allowances
Net Sales
Cost of Goods Sold
Net Sales
Cost of Goods Sold
Gross Profit
Operating Expenses
Selling Expenses
Administrative and General Expenses
Income from Operations
Other Revenues and Gains
Interest Revenue
Other Expenses and Losses
Interest Expense
Loss from Earthquake Damage
Income before Income Tax
Income Tax
Net Income/(Loss)
Per share of common stock:
Earnings per Common Share
1381250
46250
151250
197500
1183750
622250
197500
1183750
622250
561500
195050
98050
293,100
268800
61050
356850
61050
151250
143750
28750
115000
1.15