E4-11B (Condensed Income Statement—Periodic Inventory Method)

profileMild_tutor
 (Not rated)
 (Not rated)
Chat

E4-11B (Condensed Income Statement—Periodic Inventory Method) Presented below are selected
ledger accounts of Vu Corporation at December 31, 2014.
Cash $ 92,500 Travel and entertainment—sales $ 34,500
Merchandise inventory 267,500 Accounting and legal services 16,500
Sales 2,137,500 Insurance expense—office 12,000
Advances from customers 58,500 Advertising 27,000
Purchases 1,393,000 Transportation-out 46,500
Sales discounts 17,000 Depreciation of office equipment 24,000
Purchase discounts 13,500 Depreciation of sales equipment 18,000
Sales salaries 142,000 Telephone—sales 8,500
Office salaries 173,000 Utilities—office 16,000
Purchase returns 7,500 Miscellaneous office expenses 4,000
Sales returns 39,500 Rental revenue 120,000
Transportation-in 36,000 Extraordinary loss (before tax) 35,000
Accounts receivable 71,250 Interest expense 88,000
Sales commissions 41,500 Common stock ($10 par) 450,000
B Exercises • 3
3 4
7
8
7
5
3 4
5 7
Vu’s effective tax rate on all items is 34%. A physical inventory indicates that the ending inventory is
$343,000.
Instructions
Prepare a condensed 2014 income statement for Vu Corporation.

    • 8 years ago
    Good Solutions
    NOT RATED

    Purchase the answer to view it

    blurred-text
    • attachment
      e4-11b.docx