Question

Skysong Corporation at June 30, 2020 goods sold missions $1,591,380 31,400 897,600 and wages expense (sales) 56,910 99,340 expense (salespersons) 31,300 22,560 ertainment expense 14,840 Telephone and Internet expense (sales) 9,120 Depreciation expense (sales equipment) 5,092 Maintenance and repairs expense (sales) 5,655 Miscellaneous selling expenses 4,254 Office supplies used 3,722 Telephone and Internet expense (administration) 2,677 The Retained Earnings account had a balance of $335,100 at July Depreciation expense (office furniture and equipment) Property tax expense Bad debt expense (selling) Maintenance and repairs expense administration Office expense Sales returns and allowances Dividends received Interest expense Income tax expense Depreciation understatement due to error-2017 (net of tax) Dividends decared on preferred stock Dividends declared on common stock $6,799 7,117 4,411 8,681 5,590 57,189 36,590 18,510 105,270 18,787 9,610 33,420 19. There are 84/450 shores of common stock outstanding

Answer 1

The multiple-step income statement is shown below
Skysong Corporation
Income statement
For the year ended June 30, 2020
Sales revenue
Sales revenue		$1,591,380
Less: Sales discounts	$31,400
Sales returns and allowances	$57,189	$88,589
Net sales		$1,502,791
Cost of goods sold		$897,600
Gross profit		$605,191
Operating expenses
Selling expenses
Sales commissions	$99,340
Salaries and wages exp	$56,910
Travel expense	$31,300
Freight-out	$22,560
Entertainment expense	$14,840
Telephone and Internet expense	$9,120
Maintenance and repairs expense	$5,655
Depreciation expense	$5,097
Bad debt expense	$4,411
Misc. selling expenses	$4,254
Total selling expenses		$253,487
Administrative expenses
Maintenance and repairs expense	$8,681
Supplies expense	$3,722
Telephone and Internet expense	$2,677
Depreciation expense	$6,799
Property tax expense	$7,117
Office expense	$5,590
Total administrative expense		$34,586
Income from operations		$317,118
Other revenue and Gains
Dividend revenue		$36,590
Other expenses and losses
Interest expense		$18,510
Income before income tax		$335,198
Income tax		$105,270
Net income /(Loss)		$229,928
Earnings per share		$2.72	229928/84450