Question

Use the following Year 3 data:

Other Selling and Administrative Expenses $ 1,051,000
Other Expenses 248,300
Sales Revenue 4,886,000
Advertising and Promotion Expenses 552,850
Salaries and Wages Expense 2,525,800
Income Tax Expense 166,850
Interest Expense 114,250
Prepare the annual income statement for Kvass, Inc.

Answer 1

Step-by-step explanation:

The preparation of the year 3 annual income statement for Kvass, Inc. is presented below:

Kvass, Inc.

Income statement

For the following year 3

Revenue

Sales Revenue $4,886,000

Total revenues $4,886,000 (A)

Less: Expenses

Other Selling and Administrative Expenses $1,051,000

Other Expenses $248,300

Advertising and Promotion Expenses $552,850

Salaries and Wages Expense $2,525,800

Income Tax Expense $166,850

Interest Expense $114,250

Total expenses $4659,050 (B)

Net income $226,950 (A- B)