Question

1-For Cullumber Company, the following information is available:

Cost of goods sold	$400000
Dividend revenue	15300
Income tax expense	35900
Operating expenses	139500
Sales revenue	607000

In Cullumber’s single-step income statement, gross profit

should be reported at $207000.

should be reported at $222300.

should be reported at $46900.

should not be reported.

2-The following information is available for Swifty Corporation for 2020:

Disbursements for purchases	$1532000
Increase in trade accounts payable	98000
Decrease in merchandise inventory	39000

Cost of goods sold for 2020 was

$1473000.

$1591000.

$1395000.

$1669000.

3-Coronado Industries paid or collected during 2020 the following items:

Insurance premiums paid	$29900
Interest collected	69000
Salaries paid	281200

The following balances have been excerpted from Coronado's balance sheets:

		December 31, 2020			December 31, 2019
Prepaid insurance		$2420			$3180
Interest receivable		7100			5240
Salaries and wages payable		25000			21700

Salaries and wages expense on the income statement for 2020 was

$284500.

$277900.

$327900.

$234500.

Answer 1

1. under single step income statement, gross profit will not be disclosed. only net income will disclose.

so, answer will be: D.

Should not be reported

2.

Disbursements for purchases	$ 15,32,000
Add: Increase in trade accounts payable	$       98,000
Add: Decrease in merchandise inventory	$       39,000
Cost of goods sold	$ 16,69,000

Answer is D. $1,669,000

3.

Salaries paid	$ 2,81,200
Add: Salaries and wages payable, December 31, 2020	$     25,000
Less: Salaries and wages payable, December 31, 2019	$   -21,700
Salaries and wages expense	$ 2,84,500

Answer is A. $284,500

You can reach me over comment box, if you have any doubts. Please rate this answer