Explore BrainMass

Explore BrainMass

    Income Statement Exercise for House Organs Inc

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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


    © BrainMass Inc. brainmass.com October 10, 2019, 5:14 am ad1c9bdddf

    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.