Unformatted text preview: COMPUTATION OF INCOME USING MATCHING Revenue ($150,000 + $91,000) $ 241,000 Cost of goods sold ($79,000 + $46,000) 125,000 Income $ 116,000 The $350,000 in costs incurred in the production of Machines B and D will not yet be recognized as an expense. This expense is matched and reported in the income statement in the same year in which the revenue from the sale of the machines is reported. In the meantime, this $350,000 cost is shown as an asset, Inventory, in the balance sheet....
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This note was uploaded on 06/04/2008 for the course HIST cis 101 taught by Professor Davison during the Spring '08 term at The School of the Art Institute of Chicago.
- Spring '08