prepare a condensed 2012 income statement for woods corporation 644347
(Condensed Income Statement—Periodic Inventory Method) Presented below are selected ledger accounts of Woods Corporation at December 31, 2012.
|
Cash |
$ 185,000 |
Salaries and wages expense (sales) |
$284,000 |
|
Inventory |
535,000 |
Salaries and wages expense (Office) |
346,000 |
|
Sales revenue |
4,175,000 |
Purchase returns |
15,000 |
|
Unearned revenue |
117,000 |
Sales returns and allowances |
79,000 |
|
Purchases |
2,786,000 |
Transportation in |
72,000 |
|
Sales discounts |
34,000 |
Accounts receivable |
142,500 |
|
Purchase discounts |
27,000 |
Sales commissions |
83,000 |
|
Selling expenses |
69,000 |
Telephone expense (sales) |
17,000 |
|
Accounting and legal services |
33,000 |
Utilities expense (Office) |
32,000 |
|
Insurance expense (Office) |
24,000 |
Miscellaneous Office expenses |
8,000 |
|
Advertising |
54,000 |
Rent revenue |
240,000 |
|
Transportation out |
93,000 |
Extraordinary loss (before tax) |
60,000 |
|
Depreciation expense (office equipment) |
48,000 |
Interest expense |
176,000 |
|
Depreciation expense (sales equipment) |
36,000 |
Common stock ($10 par) |
900,000 |
Woods’s effective tax rate on all items is 34%. A physical inventory indicates that the ending inventory is $686,000.
Instructions
Prepare a condensed 2012 income statement for Woods Corporation.