The amount of gross profit to be reported on ABC Company's 12/31/X1 income statement is $39,100.
To calculate the gross profit, we need to subtract the cost of goods sold (COGS) from the sales revenue.
Given information:
Sales revenue = $54,200
COGS = $15,100
Gross profit = Sales revenue - COGS = $54,200 - $15,100 = $39,100
Therefore, the correct answer is $39,100.
Complete Question:
General Ledger for ABC Company
The following is the general ledger for ABC Company as of December 31, 20X1. Use this information to answer questions (1) through (4).
ABC Company
General Ledger
As of December 31, 20X1
Amount
Assets
Cash $29,400
Accounts receivable 8,100
Supplies 4,900
Prepaid rent 20,200
Equipment (net) 63,800
Liabilities
Accounts payable $ 6,300
Salaries payable 4,000
Interest payable 1,100
Utilities payable 3,700
Bonds payable 38,400
Stockholders' equity
Common stock $60,900
Retained earnings 0
Dividends 2,100
Revenues
Sales revenue $54,200
Interest revenue 1,400
Expenses
Cost of goods sold $15,100
Salaries expense 7,100
Rent expense 4,900
Supplies expense 1,300
Utilities expense 4,800
Depreciation expense 2,500
Interest expense 2,100
Income tax expense 3,700
What is the amount of gross profit to be reported on ABC Company’s 12/31/X1 income statement?
a. $40,500
b. $14,100
c. $39,100
d. $17,800