Question

If I am given Cost of Goods Sold, Sales, Sales Discount, Salaries Expense and Tuition Revenue with a 12% Income Taxes what would the income statement look like. More particularly what part of the statement would the tuition revenue and taxes go?

Answer 1

Answer: Your welcome!

Step-by-step explanation:

The income statement would include the following:

Revenues:

Sales

Tuition Revenue

Less: Sales Discounts

Gross Profit

Expenses:

Cost of Goods Sold

Salaries Expense

Income Tax Expense

Net Profit (Loss)

The tuition revenue would be reported under the Revenues section of the income statement and the 12% income tax expense would be reported under the Expenses section.