Sales Revenue 400,000,000 Less: cost of sales 253,000,000 Gross profit 147,000,000 Add: miscellaneous income 53,000,000 Gross profit 200,000,000 Less: Operating expenses Rent of office space 6,000,000 Electricity 3,200,000 Staff salaries & wages 2,000,000 Telephone and meals 7,000,000 Repairs 2,600,000 Sales promotions 3,600,000 Depreciation 10,000,000 Consultancy fees 5,000,000 Bad debts 7,500,000 Donations 22,000,000 -98,900,000 Surplus 101,100,000 Gift of Stationery from Picfare 26,000,000 Transport paid for the Gift 500,000 telephone and meals Meals 1,750,000 shareholders consumption 2625000 Telephone 2625000 5250000 Total Telephone and Meals 7,000,000 Donations Donations 1,000,000 NRM Donation 19000000 Donations 2000000 Bad Debts General Bad Debts 6,000,000 Skyline bad debt 500,000 Employees 1,000,000 Repairs purchase of Box files 650000 Motor cycle 1,950,000 Total repairs 2,600,000 Compute the taxable income for the year ended 30th June 2022

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...

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Question

		Shs.
Sales Revenue		400,000,000
Less: cost of sales		253,000,000
Gross profit		147,000,000
Add: miscellaneous income		53,000,000
Gross profit		200,000,000
Less: Operating expenses

Rent of office space	6,000,000
Electricity	3,200,000
Staff salaries & wages	2,000,000
Telephone and meals	7,000,000
Repairs	2,600,000
Sales promotions	3,600,000
Depreciation	10,000,000
Consultancy fees	5,000,000
Bad debts	7,500,000
Donations	22,000,000	-98,900,000
Surplus		101,100,000

Gift of Stationery from Picfare		26,000,000
Transport paid for the Gift	500,000

telephone and meals

Meals	1,750,000

shareholders consumption	2625000
Telephone	2625000
	5250000
Total Telephone and Meals			7,000,000

Donations
Donations		1,000,000
NRM Donation		19000000
Donations		2000000

Bad Debts
General Bad Debts	6,000,000
Skyline bad debt	500,000
Employees	1,000,000

Repairs
purchase of Box files	650000
Motor cycle	1,950,000
Total repairs			2,600,000

Compute the taxable income for the year ended 30th June 2022

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