4-4 Problem Part B

4-4 Problem Part B - 28,930 Building Expense 9,130 Office...

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J.R. Reid Corporation Income Statement For The Year Ended June 30, 2007 Revenues Sales $1,585,050 Dividend Revenue 38,000 Total Revenues 1,623,050 Expenses Cost of Goods Sold 896,770 Selling Expense (See Note A) 223,035 Administrative Expense (See Note B) 72,400 Real Estate and other Local Taxes 7,320 Income Tax 133,000 Total Expenses 1,332,525 Net Income $290,525 Earning Per Common Share $3.63 Note A: Selling Expenses Freight-out $21,400 Sales Commissions 97,600 Sales Salaries 56,260 Depreciation on Sales Equipment 4,980 Telephone and Internet Expense 9,030 Building Expense-Sales 6,200 Bond Interest Expense 18,000 Miscellaneous Expense 4,715 Total Selling Expenses $223,035 Note B: Administrative Expenses Travel Expense-salesperson
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Unformatted text preview: 28,930 Building Expense 9,130 Office Supplies Used 3,450 Telephone and Internet Expense 2,820 Miscellaneous Office Expense 6,000 Entertainment Expense 14,820 Depreciation of Office Furn. & Equip 7,250 Total Administrative Expenses $72,400 J.R. Reid Corporation Retained Earnings Statement For The Year Ended June 30, 2007 Retained Earnings, July 1, as reported $337,000 Correction for understatement of net income in prior period (17,700) Retained Earnings, July 1, as adjusted 319,300 Add: Net Income 290,525 609,825 Less: Preferred Stock 9,000 Common Stock 32,000 (41,000) Retained Earnings, June 30 $568,825 Prepared By: Zach Holbert...
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4-4 Problem Part B - 28,930 Building Expense 9,130 Office...

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