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Income Statement Exercise for House Organs Inc

Can you help me prepare a traditional income statement for November (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in the response). The Income Statement ending is at the bottom, with blanks to be filled.

House of Organs, Inc., purchases organs from a well-known manufacturer and sells them at the retail level. The organs sell, on the average, for $2,300 each. The average cost of an organ from the manufacturer is $1,502. The costs that the company incurs in a typical month are presented below:

Costs Cost Formula
Advertising $945 per month
Delivery of organs $58 per organ sold
Sales salaries and commissions $4,805 per month, plus 4% of sales
Utilities $654 per month
Depreciation of sales facilities $4,919 per month
Executive salaries $13,584 per month
Depreciation of office equipment $883 per month
Clerical $2,490 per month, plus $38 per organ sold
Insurance $709 per month

During November, the company sold and delivered 60 organs.

Income Statement Question:

House Of Organs, Inc.
Traditional Income Statement
For the Month Ended November 30

Selling and administrative expenses:
Selling expenses:

Total selling expenses

Administrative expenses:

Total administrative expenses

Total selling and administrative expenses


Solution Preview

Dear student,
The solution of traditional income statement is provided in a separate excel file attached in the acceptable format.

House of Organs
Traditional Income statement
For the month ending November 30th ...

Solution Summary

Income statement exercise for House Organs Inc is examined. The cost that the company incurs in a typical month is presented.