Question

The Income Statement of Desert Corporation for 2019 included Interest Revenue for $156,000. The Cash Ledger for the company for 2018 showed $199,500 cash paid for salaries, $18,600 cash paid for insurance, and $433,200 cash paid for inventory. The following balances have been excerpted from Desert Corporation's balance sheet: December 31, 2018 December 31, 2019 interest Receivable $18,200 $9,000 Salaries & Wages Payable $17,800 $ 25,400 Prepaid Insurance $ 1.200 $ 3.000 Inventory $33.000 $59.000 Accounts Payable $16.700 $35.500

salary expanse and Insurance expense reported on the 2019 accrual based income statement??

thank you!!!!

Answer 1

Page 1 Given data that Income statment of desegt coopposjation fog 2019 included Integgest Revenue fog $ 156,000. The cash ledgeg fog the company fosy 2018 showed $ 199,500 cash paid fog salasjies. Cost of goods sold reposited to Income statment in 2019 $ 426,000 Wooking notes: Cost of goods sold $433,4160 Cash paid fogy Inventogly $433,200 Add; opening Inventosyy $33,000 $ 35,500 Ending accounts payable $ 501,900 Leas: closing Inventory $59,000 $ 16,700 Opening accounts payable $ 426,000 Cost of goods sold