erform the Reperformance or Recalculation procedures to check the mathematical accuracy of the Income Statement. What issue did you find? What is the next step? Create a Corrected version of the Income Statement. Income Statement For the Year Ended For the Year Ended Revenue 3/31/2021 3/31/2022 Sales Revenue: Corporate Accounts $ 353,739.57 $ 343,050.56 Sales Revenues: Storefront $ 80,649.00 $ 91,411.50 Total Sales Revenue $ 434,388.57 $ 434,462.06 Cost of Goods Sold: Ingredients $ 69,736.39 $ 64,645.64 Cost of Goods Sold: Boxes and Cupcake Cups $ 3,875.55 $ 3,755.55 Cost of Goods Sold: Beverages $ 5,466.50 $ 5,681.50 Total COGS $ 76,078.44 $ 74,082.69 Gross Profit $ 358,310.13 $ 360,379.37 Interest Revenue $ 89.00 $ 65.00 Gross Profit Plus Interest Revenue $ 358,399.13 $ 360,444.37 Expenses Wage Expense $ 216,719.00 $ 217,791.00 Wage Tax Expense $ 17,971.24 $ 18,077.94 Medical Insurance Expense $ 8,100.00 $ 17,100.00 Auto Insurance Expense $ 1,035.00 $ 1,035.00 Interest Expense $ 3,996.90 $ 4,197.69 Electrical & Gas Service Expense $ 1,523.20 $ 1,708.00 Liability Insurance Expense $ 3,768.40 $ 3,693.60 Telecommunications Expense $ 472.50 $ 462.00 Cell Phone Service Expense $ 912.00 $ 933.00 Postage Expense $ 139.50 $ 135.90 Professional Services Expense $ 2,070.00 $ 2,122.50 Maintenance Expense $ 1,212.00 $ 1,132.00 Office Supplies Expense $ 3,050.00 $ 7,342.00 Dry Cleaning Expense $ 398.75 $ 416.15 Storefront Paper Supplies Expense $ 778.25 $ 1,869.00 Rental Expense $ 8,752.00 $ 4,752.00 Waste Services Expense $ 150.00 $ 150.00 Car Maintenance and Fuel Expense $ 995.38 $ 1,026.78 Repair Expense $ 372.50 $ 381.25 Water Expense $ 378.75 $ 373.75 Soda Machine Repair and CO2 Expense $ 1,156.00 $ 1,128.00 Interest Expense $ 3,996.90 $ 4,197.69 Credit Card Expense $ 878.31 $ 897.89 Cooking Supplies Expense $ 12,704.00 $ 10,858.00 Banking Fees $ 445.00 $ 445.00 Selling and Administrative Expenses $ 288,978.68 $ 298,028.45 Depreciation Expense: Equipment $ 3,627.00 $ 4,152.00 Depreciation Expense: Plant & Property $ 3,300.00 $ 3,300.00 Total Depreciation Expense $ 6,927.00 $ 7,452.00 Total Expenses $ 295,905.68 $ 305,480.45 Earnings Before Income Taxes $ 62,493.45 $ 54,963.92 Income Tax Expense $ 21,247.78 $ 18,683.66 Net Income $ 41,245.67 $ 36,280.26 Earnings per Share $ 0.82 $ 0.73

erform the Reperformance or Recalculation procedures to check the mathematical accuracy of the Income Statement. What issue did you find? What is the next step? Create a Corrected version of the Income Statement. Income Statement For the Year Ended For the Year Ended Revenue 3/31/2021 3/31/2022 Sales Revenue: Corporate Accounts $ 353,739.57 $ 343,050.56 Sales Revenues: Storefront $ 80,649.00 $ 91,411.50 Total Sales Revenue $ 434,388.57 $ 434,462.06 Cost of Goods Sold: Ingredients $ 69,736.39 $ 64,645.64 Cost of Goods Sold: Boxes and Cupcake Cups $ 3,875.55 $ 3,755.55 Cost of Goods Sold: Beverages $ 5,466.50 $ 5,681.50 Total COGS $ 76,078.44 $ 74,082.69 Gross Profit $ 358,310.13 $ 360,379.37 Interest Revenue $ 89.00 $ 65.00 Gross Profit Plus Interest Revenue $ 358,399.13 $ 360,444.37 Expenses Wage Expense $ 216,719.00 $ 217,791.00 Wage Tax Expense $ 17,971.24 $ 18,077.94 Medical Insurance Expense $ 8,100.00 $ 17,100.00 Auto Insurance Expense $ 1,035.00 $ 1,035.00 Interest Expense $ 3,996.90 $ 4,197.69 Electrical & Gas Service Expense $ 1,523.20 $ 1,708.00 Liability Insurance Expense $ 3,768.40 $ 3,693.60 Telecommunications Expense $ 472.50 $ 462.00 Cell Phone Service Expense $ 912.00 $ 933.00 Postage Expense $ 139.50 $ 135.90 Professional Services Expense $ 2,070.00 $ 2,122.50 Maintenance Expense $ 1,212.00 $ 1,132.00 Office Supplies Expense $ 3,050.00 $ 7,342.00 Dry Cleaning Expense $ 398.75 $ 416.15 Storefront Paper Supplies Expense $ 778.25 $ 1,869.00 Rental Expense $ 8,752.00 $ 4,752.00 Waste Services Expense $ 150.00 $ 150.00 Car Maintenance and Fuel Expense $ 995.38 $ 1,026.78 Repair Expense $ 372.50 $ 381.25 Water Expense $ 378.75 $ 373.75 Soda Machine Repair and CO2 Expense $ 1,156.00 $ 1,128.00 Interest Expense $ 3,996.90 $ 4,197.69 Credit Card Expense $ 878.31 $ 897.89 Cooking Supplies Expense $ 12,704.00 $ 10,858.00 Banking Fees $ 445.00 $ 445.00 Selling and Administrative Expenses $ 288,978.68 $ 298,028.45 Depreciation Expense: Equipment $ 3,627.00 $ 4,152.00 Depreciation Expense: Plant & Property $ 3,300.00 $ 3,300.00 Total Depreciation Expense $ 6,927.00 $ 7,452.00 Total Expenses $ 295,905.68 $ 305,480.45 Earnings Before Income Taxes $ 62,493.45 $ 54,963.92 Income Tax Expense $ 21,247.78 $ 18,683.66 Net Income $ 41,245.67 $ 36,280.26 Earnings per Share $ 0.82 $ 0.73

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 15EA: The following select account data is taken from the records of Reese Industries for 2019. A. Use the...

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Question

Perform the Reperformance or Recalculation procedures to check the mathematical accuracy of
the Income Statement. What issue did you find? What is the next step? Create a Corrected
version of the Income Statement.

Income Statement
	For the Year Ended	For the Year Ended
Revenue	3/31/2021	3/31/2022
Sales Revenue: Corporate Accounts	$ 353,739.57	$ 343,050.56
Sales Revenues: Storefront	$ 80,649.00	$ 91,411.50
Total Sales Revenue	$ 434,388.57	$ 434,462.06
Cost of Goods Sold: Ingredients	$ 69,736.39	$ 64,645.64
Cost of Goods Sold: Boxes and Cupcake Cups	$ 3,875.55	$ 3,755.55
Cost of Goods Sold: Beverages	$ 5,466.50	$ 5,681.50
Total COGS	$ 76,078.44	$ 74,082.69
Gross Profit	$ 358,310.13	$ 360,379.37
Interest Revenue	$ 89.00	$ 65.00
Gross Profit Plus Interest Revenue	$ 358,399.13	$ 360,444.37
Expenses
Wage Expense	$ 216,719.00	$ 217,791.00
Wage Tax Expense	$ 17,971.24	$ 18,077.94
Medical Insurance Expense	$ 8,100.00	$ 17,100.00
Auto Insurance Expense	$ 1,035.00	$ 1,035.00
Interest Expense	$ 3,996.90	$ 4,197.69
Electrical & Gas Service Expense	$ 1,523.20	$ 1,708.00
Liability Insurance Expense	$ 3,768.40	$ 3,693.60
Telecommunications Expense	$ 472.50	$ 462.00
Cell Phone Service Expense	$ 912.00	$ 933.00
Postage Expense	$ 139.50	$ 135.90
Professional Services Expense	$ 2,070.00	$ 2,122.50
Maintenance Expense	$ 1,212.00	$ 1,132.00
Office Supplies Expense	$ 3,050.00	$ 7,342.00
Dry Cleaning Expense	$ 398.75	$ 416.15
Storefront Paper Supplies Expense	$ 778.25	$ 1,869.00
Rental Expense	$ 8,752.00	$ 4,752.00
Waste Services Expense	$ 150.00	$ 150.00
Car Maintenance and Fuel Expense	$ 995.38	$ 1,026.78
Repair Expense	$ 372.50	$ 381.25
Water Expense	$ 378.75	$ 373.75
Soda Machine Repair and CO2 Expense	$ 1,156.00	$ 1,128.00
Interest Expense	$ 3,996.90	$ 4,197.69
Credit Card Expense	$ 878.31	$ 897.89
Cooking Supplies Expense	$ 12,704.00	$ 10,858.00
Banking Fees	$ 445.00	$ 445.00
Selling and Administrative Expenses	$ 288,978.68	$ 298,028.45
Depreciation Expense: Equipment	$ 3,627.00	$ 4,152.00
Depreciation Expense: Plant & Property	$ 3,300.00	$ 3,300.00
Total Depreciation Expense	$ 6,927.00	$ 7,452.00
Total Expenses	$ 295,905.68	$ 305,480.45
Earnings Before Income Taxes	$ 62,493.45	$ 54,963.92
Income Tax Expense	$ 21,247.78	$ 18,683.66
Net Income	$ 41,245.67	$ 36,280.26
Earnings per Share	$ 0.82	$ 0.73

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