Problem4-1 - Problem 4-1 Name Kristin VanStrate Section...

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Problem 4-1 Name: Kristin VanStrate Section: Problem 1 Chapter 4 Enter the appropriate amount or label in the shaded cells. An asterisk (*) will appear next to an incorrect answer in the outlined cells. 1. MAGIC VINYL CO. Income Statement For the Year Ended March 31, 2008 Revenues from sales: Sales $1,542,000 Less: Sales returns and allowances $27,720 Sales discounts 26,280 54,000 Net sales $1,488,000 Cost of merchandise sold 930,000 Gross profit $558,000 Expenses: Selling expenses: Sales salaries expense $207,840 Advertising expense 52,560 Depreciation expense—store equipment 7,680 Miscellaneous selling expense 1,920 Total selling expenses $270,000 Administrative expenses: Office salaries expense $100,980 Rent expense 37,620 Depreciation expense—office equipment 15,240 Insurance expense 4,680 Office supplies expense 1,560 Miscellaneous administrative expense 1,920 Total administrative expenses 162,000 Total expenses 432,000 Income from operations $126,000 Other expense: Interest expense
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