Based on the given transaction. Create an income statement for LESC Co. Inc.

As of May 17, 2023

Extraordinary items P 20,000

Income tax P 12,750
Overhead P 6,000
Selling expenses P 9.000
Administrative Expense P 6,000
Materials P 8,000
Interest Revenue P 5,000
Depreciation P 5,000
Labor P 11,000
Sales P 50,000
Interest Expense -P 10.000

INCOME STATEMENT
Sales 50,000 Solution
Interest Revenue 5,000 Sales + Interest Revenue = 55,000
55, 000

COST OF GOODS/COST OF SALES Gross Profit = Sales - Cost of Goods

Materials 8,000 = 55,000 - (8,000 + 11,000 + 6,000)

Labor 11,000 = 55,000 - 25,000
Overhead 6,000
Total Cost of Goods 25,000 Gross Profit = 30,000

GROSS PROFIT 30,000

OPERATING EXPENSES

Selling Expenses 9,000 Total Operating Expenses

Administrative Expenses 6,000
Depreciation 5,000 = 9,000 + 6,000 + 5,000
Total Operating Expenses 20,000 = 20,000

Operating Income 10,000 Operating Income =

Gross Profit - Total Operating Expenses

= 30,000 - 20,000
= 10,000

OTHER INCOME AND EXPENSES

Income Before Taxes
Extra Ordinary Items 20,000
Interest Expenses (-10,000) = (20,000 -10,000) + 10,000
Total Other Income and Expenses 10, 000 = 20,000

Income Before Taxes 20,000

Income Taxes 12,750

Net Income
NET INCOME 7,250 = 20,000 - 12,750
= 7,250