Question

Accounts Payable Cost of Goods Sold Gain on Sale of Equipment General and Admin Expense Loss from Discontinued Ope Salaries Payable Tax Expense $45,000 230,000 15,000 160,000 10,500 20,000 60,000 Blanton is preparing their multi-step income statement and have downloaded their income statement accounts. Two accounts were downloaded incorrectly and do not belong on the income statement (HINT: you have to identify the wrong accounts). These two replace the wrong accounts shown above: Selling Expenses 9,000 Sales Revenue 600,000 What is Blanton Co's net income (or net loss) for the period?

Answer 1

Sales Revenue	600000
Add: Gain on Sale of Equipment	15000
Total Revenue		615000
Less: Expenses
Cost of goods sold	230000
General and admin expenses	160000
Selling Expenses	9000
Loss from discontinued operations	10500
Tax expense	60000
Total Expenses		469500
Net income for the period		145500