LO 13-939. Addison Corporation is currently going through aL Chapter 11 bankruptcy reorganization. Thecompany has the following account balances forthe current year. Prepare an income statement forthis organization. The effective tax rate is 20percent (realization of any tax benefits isanticipated).DebitCreditAdvertising expense$ 24,000Cost of goods sold211,000Depreciation expense22,000Interest expense4,000Interest revenue$ 32,000Loss on closing of109,000branch as part ofreorganizationProfessional fees71,000Rent expense16,000Revenues467,000Salaries expense70,000

The income statement represents the net income or net loss that is calculated by deducting the…

Addison Corporation is currently going through a L Chapter 11 bankruptcy reorganization. The company has the following account balances for the current year. Prepare an income statement for this organization. The effective tax rate is 20

Addison Corporation is currently going through a L Chapter 11 bankruptcy reorganization. The company has the following account balances for the current year. Prepare an income statement for this organization. The effective tax rate is 20

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

LO 13-9
39. Addison Corporation is currently going through a
L Chapter 11 bankruptcy reorganization. The
company has the following account balances for
the current year. Prepare an income statement for
this organization. The effective tax rate is 20
percent (realization of any tax benefits is
anticipated).
Debit
Credit
Advertising expense
$ 24,000
Cost of goods sold
211,000
Depreciation expense
22,000
Interest expense
4,000
Interest revenue
$ 32,000
Loss on closing of
109,000
branch as part of
reorganization
Professional fees
71,000
Rent expense
16,000
Revenues
467,000
Salaries expense
70,000

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