Using the data provided below, determine what amounts will appear on the income statement that is prepared by "nature of expenses."
$$\begin{array} { | l | l | }
\hline \text { Distribution expense (1) } & 23,000\
\hline \text { Cost of goods sold (2) } & 70 , 000 \
\hline\text { General and administrative expense (3) } & 25 , 000\
\hline
\end{array}$$ Note 1 - Distribution costs include $13,000 of employee wages and $10,000 of depreciation.
Note 2 - Cost of goods sold includes $10,000 for depreciation; the remaining amount relates to the net change in inventory and purchases during the year.
Note 3 - General and administrative expenses include $20,000 of employee wages and $5,000 of depreciation.

Question

Using the data provided below, determine what amounts will appear on the income statement that is prepared by "nature of expenses."
 $$\begin{array} { | l | l | } 
\hline \text { Distribution expense (1) } & 23,000\
\hline \text { Cost of goods sold (2) } & 70 , 000 \
\hline\text { General and administrative expense (3) } & 25 , 000\
\hline
\end{array}$$  Note 1 - Distribution costs include $13,000 of employee wages and $10,000 of depreciation.
Note 2 - Cost of goods sold includes $10,000 for depreciation; the remaining amount relates to the net change in inventory and purchases during the year.
Note 3 - General and administrative expenses include $20,000 of employee wages and $5,000 of depreciation.

Quizplus · Accepted Answer

The Answer of Using the data provided below, determine what amounts will appear on the income statement that is prepared by "nature of expenses."
 $$\begin{array} { | l | l | } 
\hline \text { Distribution expense (1) } & 23,000\
\hline \text { Cost of goods sold (2) } & 70 , 000 \
\hline\text { General and administrative expense (3) } & 25 , 000\
\hline
\end{array}$$  Note 1 - Distribution costs include $13,000 of employee wages and $10,000 of depreciation.
Note 2 - Cost of goods sold includes $10,000 for depreciation; the remaining amount relates to the net change in inventory and purchases during the year.
Note 3 - General and administrative expenses include $20,000 of employee wages and $5,000 of depreciation.

Using the Data Provided Below, Determine What Amounts Will Appear