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    Problem 6 16 2

    Uploaded by

    KC Hershey Lor
    1) The document contains income statements for Karla Company and Masay Company for the year ended December 31, 2017. Karla Company reported net sales of $7,700,000 and net income of $640,500. Masay Company reported net sales of $7,450,000 and net income of $574,000. 2) Both income statements include line items for net sales, other income, expenses such as cost of goods sold, operating expenses, depreciation, and income taxes. 3) The income statements provide information on the revenues, costs and resulting net income for each company during the fiscal year.

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    Problem 6 16 2

    Uploaded by

    KC Hershey Lor
    596 views2 pages
    1) The document contains income statements for Karla Company and Masay Company for the year ended December 31, 2017. Karla Company reported net sales of $7,700,000 and net income of $640,500. Masay Company reported net sales of $7,450,000 and net income of $574,000. 2) Both income statements include line items for net sales, other income, expenses such as cost of goods sold, operating expenses, depreciation, and income taxes. 3) The income statements provide information on the revenues, costs and resulting net income for each company during the fiscal year.

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    PROBLEM-6-16-2

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    1) The document contains income statements for Karla Company and Masay Company for the year ended December 31, 2017. Karla Company reported net sales of $7,700,000 and net income of $640,500. Masay Company reported net sales of $7,450,000 and net income of $574,000. 2) Both income statements include line items for net sales, other income, expenses such as cost of goods sold, operating expenses, depreciation, and income taxes. 3) The income statements provide information on the revenues, costs and resulting net income for each company during the fiscal year.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    596 views2 pages

    Problem 6 16 2

    Uploaded by

    KC Hershey Lor
    1) The document contains income statements for Karla Company and Masay Company for the year ended December 31, 2017. Karla Company reported net sales of $7,700,000 and net income of $640,500. Masay Company reported net sales of $7,450,000 and net income of $574,000. 2) Both income statements include line items for net sales, other income, expenses such as cost of goods sold, operating expenses, depreciation, and income taxes. 3) The income statements provide information on the revenues, costs and resulting net income for each company during the fiscal year.

    Copyright:

    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 2

    MALABAYABAS, DENISSEE MARIE L.

    BSA32KB1

    PROBLEM 6-1

    Karla Company
    Income Statement
    Year ended December 31, 2017

    Note

    Net Sales 1 7,700,000.00

    Other income 2 400,000.00

    Increase in inventory 3 500,000.00

    Total 8,600,000.00
    Expenses:

    Net purchases 4 5,050,000.00

    Freight out 175,000.00

    Salesmen's commission 650,000.00

    Depreciation 5 425,000.00

    Representation Expense 785,000.00

    Officers' salaries 500,000.00

    Other expenses 6 100,000.00 7,685,000.00

    Income before tax 915,000.00

    Income tax 274,500.00

    Net Income 640,500.00


    PROBLEM 6-2

    Masay Company
    Income Statement
    Year ended December 31,
    2017

    Note

    Net Sales 1 7,450,000.00

    Other income 2 210,000.00

    Total 7,660,000.00
    Expenses:
    Decrease in finished goods and Goods
    in process 3 130,000.00
    Raw materials used 4 2,920,000.00
    Direct Labor 950,000.00
    Factory Overhead 5 1,120,000.00
    Salaries 6 550,000.00
    Advertising 160,000.00
    Depreciation 7 110,000.00
    Delivery Expense 200,000.00
    Accounting and legal fees 150,000.00
    Office expenses 250,000.00
    Earthquake loss 300,000.00 6,840,000.00

    Income before tax 820,000.00

    Income tax expense 246,000.00

    Net Income 574,000.00

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