Question

In: Accounting

The income statement of Oriole Company for the month of July shows net income of $3,490...

The income statement of Oriole Company for the month of July shows net income of $3,490 based on Service Revenue $7,630, Salaries and Wages Expense $2,370, Supplies Expense $980, and Utilities Expense $790. In reviewing the statement, you discover the following: 1. Insurance expired during July of $550 was omitted. 2. Supplies expense includes $410 of supplies that are still on hand at July 31. 3. Depreciation on equipment of $290 was omitted. 4. Accrued but unpaid wages at July 31 of $440 were not included. 5. Service performed but unrecorded totaled $740. Prepare a correct income statement for July 2022.

Solutions

Expert Solution

Solution :

The Net Income as per the corrected Income statement for July 2022 is = $ 3,360

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.

ekkarill92 answered 2 hours ago
< Previous

Related Solutions

The condensed income statement for the Oriole and Paul partnership for 2020 is as follows. Oriole...
The condensed income statement for the Oriole and Paul partnership for 2020 is as follows. Oriole and Paul Company Income Statement For the Year Ended December 31, 2020 Sales (300,000 units) $1,500,000 Cost of goods sold 960,000 Gross profit 540,000 Operating expenses Selling $350,000 Administrative 232,500 582,500 Net loss $(42,500 ) A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are...
1. Hotel has submitted an income statement for the end of the month that shows a...
1. Hotel has submitted an income statement for the end of the month that shows a net profit of $10,000. You will need to show that income statement based on the following given information. Food revenue and room’s revenue are the only two forms of revenue and food revenue is exactly the same as room revenue. Direct operating expenses for food is 50% of food revenue and direct operating expenses for rooms is 35% of room’s revenue. Marketing expenses are...
Oriole Company reported the following on its income statement: Income before income taxes $730000 Income tax...
Oriole Company reported the following on its income statement: Income before income taxes $730000 Income tax expense 270000 Net income $460000 An analysis of the income statement revealed that interest expense was $100000. Oriole Company's times interest earned was
Profit or Loss Account (Income Statement) of a business shows a net profit of 500,000. The...
Profit or Loss Account (Income Statement) of a business shows a net profit of 500,000. The owner of the business says, ‘Where is the money? My business does not have an increase in cash by $500,000 in the bank account. Where is the $500,000 profit? Required: Provide an explanation to the owner of the business about why net profit of a Profit or Loss Account (Income Statement) is not necessarily equal to the cash inflow. Your explanation must include two...
Variable Costing Income Statement On July 31, the end of the first month of operations, Rhys...
Variable Costing Income Statement On July 31, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept: Sales (20,000 units) $1,520,000 Cost of goods sold: Cost of goods manufactured $1,152,000 Less ending inventory (4,000 units) 192,000 Cost of goods sold 960,000 Gross profit $560,000 Selling and administrative expenses 112,000 Income from operations $448,000 a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $72,000 and...
Variable Costing Income Statement On July 31, 2016, the end of the first month of operations,...
Variable Costing Income Statement On July 31, 2016, the end of the first month of operations, Holton Company prepared the following income statement, based on the absorption costing concept: Sales (18,000 units) $972,000 Cost of goods sold: Cost of goods manufactured $748,000 Less ending inventory (4,000 units) 136,000 Cost of goods sold 612,000 Gross profit $360,000 Selling and administrative expenses 68,000 Income from operations $292,000 a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $44,000...
Variable Costing Income Statement On July 31, the end of the first month of operations, Rhys...
Variable Costing Income Statement On July 31, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept: Sales (24,000 units) $1,224,000 Cost of goods sold: Cost of goods manufactured $971,500 Less ending inventory (5,000 units) 167,500 Cost of goods sold 804,000 Gross profit $420,000 Selling and administrative expenses 136,000 Income from operations $284,000 a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $87,000 and...
Income Statement An inexperienced accountant for Prestwick Company prepared the following income statement for the month...
Income Statement An inexperienced accountant for Prestwick Company prepared the following income statement for the month of August, current year. PRESTWICK COMPANY AUGUST 31, CURRENT YEAR Revenues:  Services provided to customers $17,000  Investment by stockholders 5,000  Loan from bank  15,000 $37,000 Expenses:  Payments to long-term creditors $11,700  Expenses required to provide   services to customers 7,800  Purchase of land  16,000   35,500 Net income $  1,500 Statement of Cash Flows Prepare a revised income statement in accordance with generally accepted accounting principles....
S&J Plumbing, Incorporated's income statement shows a net profit before tax of $468 and net sales...
S&J Plumbing, Incorporated's income statement shows a net profit before tax of $468 and net sales of $7,482 for 2010. Total assets are at $3,244. The balance sheet lists the company’s equity for fiscal year ending 2010 as $1,746. Calculate the following ratios for this company: Return on sales ratio (net profit margin) Return on assets (ROA) Return on equity (ROE) What make S&J Plumbing, Inc efficient?
The comparative statements of Oriole Company are presented here. ORIOLE COMPANY Income Statements For the Years...
The comparative statements of Oriole Company are presented here. ORIOLE COMPANY Income Statements For the Years Ended December 31 2022 2021 Net sales $2,067,400 $1,925,000 Cost of goods sold 1,147,000 1,126,720 Gross profit 920,400 798,280 Selling and administrative expenses 560,000 536,480 Income from operations 360,400 261,800 Other expenses and losses    Interest expense 24,640 22,400 Income before income taxes 335,760 239,400 Income tax expense 100,728 71,820 Net income $ 235,032 $ 167,580 ORIOLE COMPANY Balance Sheets December 31 Assets 2022 2021...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT