Question

The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company. Advertising expense $ 34,600 Direct labor $ 679,900 Depreciation expense—Office equipment 8,300 Income taxes expense 242,200 Depreciation expense—Selling equipment 10,900 Indirect labor 60,000 Depreciation expense—Factory equipment 30,800 Miscellaneous production costs 10,200 Factory supervision 100,300 Office salaries expense 72,000 Factory supplies used 9,000 Raw materials purchases 971,000 Factory utilities 31,000 Rent expense—Office space 21,000 Inventories Rent expense—Selling space 27,600 Raw materials, December 31, 2018 150,600 Rent expense—Factory building 76,200 Raw materials, December 31, 2019 190,000 Maintenance expense—Factory equipment 39,500 Work in process, December 31, 2018 15,800 Sales 4,526,500 Work in process, December 31, 2019 21,700 Sales salaries expense 391,500 Finished goods, December 31, 2018 163,600 Finished goods, December 31, 2019 139,600 Problem 18-3A Part 2 2. Prepare the company’s 2019 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses

Answer 1