The Following Information Is Available for the Weston Consulting Company

question 79

Essay

The following information is available for the Weston Consulting Company for the fiscal year ended December 31.
$$\begin{array} { l r r } \text { Gross margin } & \$ 170,000 \\\text { Operating profit } & \$ 65,500 \\\text { Reveruses } & \$ 809,000\\\text { Income tax rate }&34\%\end{array}$$
Required:
(a) Compute the cost of services sold.
(b) Compute the total marketing and administrative costs.
(c) Compute net income.

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Definitions:

Deferrals

Expenses or revenues that have been recorded but not yet realized. This can involve money that has been received or paid but not yet earned or incurred.

Adjusting Entries

Documentation in accounting completed at the end of a financial period to rightly assign incomes and expenses to the appropriate time.

Office Supplies

Items used in offices for daily operations, such as paper, pens, and staplers.

Interest-Bearing Note

A promissory note with a specified interest rate, where the issuer agrees to pay the bearer interest in addition to repaying the principal amount at maturity.