In the current year, Randa Merchandising Incorporated sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of an income statement follows. Item Debit Credit 1. Net sales $ 4,700,000 2. Gain on state's condemnation of company property 373,000 3. Cost of goods sold $ 2,399,000 4. Income tax expense 352,000 5. Depreciation expense 376,000 6. Gain on sale of wholesale business segment, net of tax 1,256,000 7. Loss from operating wholesale business segment, net of tax 720,000 8. Loss of assets from meteor strike 1,037,000 Prepare the December 31 year-end income statement. (Loss amounts should be indicated with a minus sign.)
In the current year, Randa Merchandising Incorporated sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of an income statement follows. Item Debit Credit 1. Net sales $ 4,700,000 2. Gain on state's condemnation of company property 373,000 3. Cost of goods sold $ 2,399,000 4. Income tax expense 352,000 5. Depreciation expense 376,000 6. Gain on sale of wholesale business segment, net of tax 1,256,000 7. Loss from operating wholesale business segment, net of tax 720,000 8. Loss of assets from meteor strike 1,037,000 Prepare the December 31 year-end income statement. (Loss amounts should be indicated with a minus sign.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In the current year, Randa Merchandising Incorporated sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of an income statement follows.
| Item | Debit | Credit | |
|---|---|---|---|
| 1. | Net sales | $ 4,700,000 | |
| 2. | Gain on state's condemnation of company property | 373,000 | |
| 3. | Cost of goods sold | $ 2,399,000 | |
| 4. | Income tax expense | 352,000 | |
| 5. | 376,000 | ||
| 6. | Gain on sale of wholesale business segment, net of tax | 1,256,000 | |
| 7. | Loss from operating wholesale business segment, net of tax | 720,000 | |
| 8. | Loss of assets from meteor strike | 1,037,000 |
Prepare the December 31 year-end income statement. (Loss amounts should be indicated with a minus sign.)
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