Question

The income statement for Ib8-9p Company for 2022 is
shown below:

Sales revenue ...............   $573,000
Cost of goods sold ..........       ?
Salaries expense ............       ?    
Net income ..................    104,000

The following balances were taken from Ib8-9p Company's
balance sheets:

                     January 1, 2022    December 31, 2022
Salaries payable           65,000             87,000

Assume Ib8-9p Company paid $122,000 cash to its employees
for salaries during 2022.

Calculate the amount of cost of goods sold shown in Ib8-9p
Company's 2022 income statement.

Answer 1

Cost of goods sold= $ 325,000

Working:

lb8-9p company
Income statement
For the Year Ended December 31, 2022
Revenue
Sales		$      573,000
Total Revenue		$      573,000
Expenses:
Cost of Goods Sold [469000-144000]	$               325,000
Salaries expense [87000+122000-65000]	$               144,000
Total Expense (573000-104000)		$      469,000
Net Income		$      104,000