income statement (sip)

We are using the same company as in the first Module. However, you need to consider some additional information.

• One client indicated that they were interested in purchasing $42,500 worth of products, so the bookkeeper recorded the transaction. However, the client has not actually committed to the purchase.
• The bookkeeper already corrected the sales account. However, the bookkeeper may have made a mistake when computing cost of goods sold. She included total production costs for 2014 and did not adjust ending inventory for the $42,500 worth of units left at the end of the year. The amount of ending inventory was determined using a physical count.

• Nybrostrand Company
  31-Dec-14
  Trial Balance   (accounts in alphabetical order)
  	Debit	Credit
  Accounts payable		$ 78,000
  Accounts receivable	$ 36,500
  Cash	30,000
  Common stock		10,000
  Depreciation expense	24,350
  Cost of goods sold	307,000
  Equipment (net of   depreciation)	415,000
  Insurance	1,400
  Inventory	34,000
  Long-term debt		127,000
  Marketing	4,500
  Paid-in capital		50,000
  Property taxes	16,900
  Rent	28,000
  Retained earnings		?
  Revenues		586,000
  Salaries	78,500
  Utilities	6,700
  Total	982,850	982,850

  SLP Assignment Expectations

  Prepare an income statement for the company in good format. Always include the name of the company and the period covered in the title. Don't forget dollar signs where appropriate. You do not need to include the balance sheet. Consequently, you will not need all the accounts listed above. How does the income or loss compare to the original income statement? Explain the importance of the matching concept. 

  The submission should be 2- to 4-pages and needs to include answers to all the questions listed above. Show computations, discuss the results, and include references in APA format.