Question: The Income Statement of Dolan Corporation for 2016 included Interest Revenue for $131,000. The Cash ledger for the company for 2016 showed $160,600 cash paid for salaries, $14,400 cash paid for insurance, and $360,000 cash paid for inventory purchases. The following balances have been excerpted from Dolan Corporation's balance sheet:
|
December 31, 2016
|
December 31, 2015
|
| Interest Receivable |
$18,200
|
$15,000
|
| Salaries & Wages Payable |
$17,800
|
$ 8,400
|
| Prepaid Insurance |
$ 2,200
|
$ 3,000
|
| Inventory |
$33,000
|
$50,000
|
| Accounts Payable |
$20,000
|
$35,500
|
a. Using the above information, determine Cash Received for Interest during 2016.
b. Using the information presented in Question above, determine the amount of Salary Expense reported on the 2016 accrual based Income Statement.
c. Using the information presented in Question above, determine the amount of Insurance Expense reported on the 2016 accrual based Income Statement.
d. Using the information presented in Question above, determine the amount of Cost of Goods Sold (COGS) that was reported on the 2016 accrual based Income Statement.