Income Statement Skills Test

Let's see if you've got your ducks in a row regarding Income Statements.

The General Ledger has the following accounts and balances:

Owner Draws 20,000 Sales Returns & Allowance 1,000
Salaries 10,000 Utilities Expense 5,000
Sales Discounts 1,000 Advertising 2,000
Sales 100,000 Beginning Inventory 25,000
Maintenance & Repairs 2,000 Purchases 90,000
Prepaid Expenses 2,000 Cash 15,000
Supplies Expense 3,000 Buildings 70,000
Petty Cash 1,000 Beginning Owner's Capital 147,000

Note: A Physical Inventory was taken and the Ending Inventory Balance is 30,000.

Using the above information select the appropriate dollar amount for the following questions: Note: Paper, pencil, and a calculator will aid you in calculating the correct amounts.
Hint: Preparing an Income Statement will provide you with the answers to the questions.

Give the test a try on your own; but, if you need to see the results, check out the Income Statement I prepared for you.

Question .


Select the Correct Answer from the list above