Resources: Financial Accounting: Tools for Employment Decision Making
Scenario: An unpracticed accountant unhesitating this curt pay announcement for Simon Company, a dispose-of unshaken that has been in employment for a sum of years.
For the Year Ended December 31, 2017
Cost of property sold
As an practiced, knowledgeable accountant, you criticism the announcement and mention the aftercited facts:
Net sales await of: sales $911,000, less freight-out on goods sold $33,000, and sales produce and allowances $28,000.
Other enrichments await of sales discounts $18,000 and divulsion enrichment $4,000.
Selling payments await of salespersons' salaries $80,000, deterioration on equipment $10,000, advertising $13,000, and sales commissions $6,000.Â The commissions personate commissions compensated. At December 21, $3,000 of commissions keep been earned by salespersons but keep not been compensated.Â All damages should be narrative as Salaries and Wages Expense.
Administrative payments await of service salaries $47,000, dividends $18,000, utilities $12,000, cause payment $2,000, and divulsion payment $24,000, which includes prepayments totaling $6,000 for the primeval forbearance of 2018.Â
Prepare a specific multi-step pay announcement after a while a short description of 700 say. Assume a 25% tax rate
Show your toil on the Excel spreadsheet and propose after a while your description