episode 10 exercise 04

Part 4

Visit the CanGo Intranet to access a draft of CanGo's 1999 multiple-step format income statement prepared by an intern from the local college. Your job is to look it over and identify any errors. Check the box next to each line that contains an error. When you're done, click the "How did I do?" button and we'll show you all the errors we found.

1	CanGo
2	Income Statement
3	December 31, 1999
4	(in thousands of U.S. dollars)
5	Book sales	$35,000
6	Interest Revenue	10	$35,010
7	Selling Expenses		(1,000)
8	Grand Margin		$34,010
9	Operating Expenses
10	Cost of Goods Sold	$(20,000)
11	Depreciation	(2,000)
12	Accounts Payable	(4,000)
13	Rent Expense	(500)
14	Utility Expense	(200)	(27,600)
15	Income from Operations		$7,310
16	Other Revenues and Expenses
17	Interest Expense	$(2,000)
18	Online gaming revenue	8,000	6,000
19	Income from Operations		$13,310
20	Income Tax Expense		(3,993)
21	Net Income		$9,317

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