CHP 8 Prob Sheet1

The income tax rate on all items is 25 net income is

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Unformatted text preview: lized or expensed, expense it. c. Generally , adver6sing costs are capitalized because it is easy for firms to trace adver6sing dollars spent to revenue generated from such adver6sements. d. Expenditures made for equipment and buildings should be expensed in the period of the purchase. e. Research and development expenditures are typically capitalized in the period in which they are incurred. PE 8 ­20 Income Statement Classificia6on Using the following data, prepare a classified income statement. The income tax rate on all items is 25%. ( net income is $52,050) Adver6sing expense 4,000 Sales returns 5,000 Cost of goods sold 80,000 Dividend revenue 2,000 Gain on sale of equipment 1,000 Interest expense 5,000 Rent expense 3,600 Sales discounts 10,000 Salaries expense 11,000 Gross sales 215,000 Tornado loss 30,000 E 8 ­30 Deferred Income Taxes Yosef Company began opera6ons on January 1, 2012 At...
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This note was uploaded on 01/29/2014 for the course ACC 221 taught by Professor Julieancius during the Spring '12 term at Wisc La Crosse.

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