Use the Following Information to Prepare an Income Statement for Burleson

question 31

Essay

Use the following information to prepare an income statement for Burleson Company for the year ended December 31,2012.
1.revenue from services,$28,000
2.paid $10,000 cash for land
3.paid operating expenses,$21,000
4.paid dividends to stockholders,$4,000
5.issued $6,000 of common stock for cash

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Definitions:

Overproduction

Overproduction occurs when more goods are produced than are demanded by the market, often leading to excess inventory and wastage of resources.

Lost Sales

Revenue that was not earned due to an inability to meet customer demand or because the customer chose a competitor's product.

Customer Dissatisfaction

Negative feelings or a state of disappointment experienced by customers when products or services fail to meet their expectations.

Absorption Costing Income

The profit figure calculated under absorption costing, including all costs of production – both fixed and variable – in product costs, affecting reported income.