No work shown required These items are taken from the financial statements of Drew League II Corporation for 2020.$33,000Retained earnings (beginning of year)Utilities expense2,000Equipment56,000Accounts payable15,300Cash15,900Salaries and wages payable3,000Common stock13,000Dividends14,000Service revenue78,000Prepaid insuranceMaintenance and repairs expense3,5001,800Depreciation expense3,300Accounts receivable14,200Insurance expense2,200Salaries and wages expense47,000Accumulated depreciation-equipment17,600InstructionsPrepare an income statement as of December 31, 2020. ANSWER THE FOLLOWING QUESTION: Net income equals American Importers reports net income of $60,000 and cost of goods sold of $540,000. If the company's gross profit rate was 40%, net sales wereO A. $1,410,000O B. $990,000.O C. $1,350,000O D. $900,000

Calculation of net income and net sale of above requirement are as follows

These items are taken from the financial statements of Drew League II Corporation for 2020. $33,000 2,000 Retained earnings (beginning of year) Utilities expense Equipment Accounts payable 56,000 15,300 Cash 15,900 Salaries and wages payable 3,000 13,000 14,000 78,000 Common stock Dividends Service revenue Prepaid insurance Maintenance and repairs expense 3,500 1,800 Depreciation expense Accounts receivable 3,300 14,200 Insurance expense 2,200 Salaries and wages expense 47,000 Accumulated depreciation-equipment 17,600

These items are taken from the financial statements of Drew League II Corporation for 2020. $33,000 2,000 Retained earnings (beginning of year) Utilities expense Equipment Accounts payable 56,000 15,300 Cash 15,900 Salaries and wages payable 3,000 13,000 14,000 78,000 Common stock Dividends Service revenue Prepaid insurance Maintenance and repairs expense 3,500 1,800 Depreciation expense Accounts receivable 3,300 14,200 Insurance expense 2,200 Salaries and wages expense 47,000 Accumulated depreciation-equipment 17,600

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

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