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lа Сompany provided the rent year: chases chase returns and allowances talincome

lа Сompany provided the rent year: chases chase returns and allowances talincome

FINANCIAL ACCOUNTING
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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Karla Company provided the following information for the current year: Purchases Purchase returns and allowances Rental income Selling expenses: Freight out Salesmen's commission 5,250,000 150,000 250,000 Depreciation - store equipment Merchandise inyentory, January 1 Merchandise inventory, December 31 Sales Sales returns and allowances Sales discounts Administrative expenses: Officers' salaries 175,000 650,000 125,000 1,000,000 1,500,000 7,850,000 140,000 10,000 Depreciation - office equipment Freight in . Income tax Loss on sale ofequipment Purchase discounts Dividend revenue 500,000 300,000 500,000 250,000 50,000 100,000 150,000 50,000 Loss on sale of investment Required: a. Prepare an income statement for the year using the "functional" method with supporting notes. b. Prepare an income statement for the year using the "natural" method with supporting notes.
Transcribed Image Text:Karla Company provided the following information for the current year: Purchases Purchase returns and allowances Rental income Selling expenses: Freight out Salesmen's commission 5,250,000 150,000 250,000 Depreciation - store equipment Merchandise inyentory, January 1 Merchandise inventory, December 31 Sales Sales returns and allowances Sales discounts Administrative expenses: Officers' salaries 175,000 650,000 125,000 1,000,000 1,500,000 7,850,000 140,000 10,000 Depreciation - office equipment Freight in . Income tax Loss on sale ofequipment Purchase discounts Dividend revenue 500,000 300,000 500,000 250,000 50,000 100,000 150,000 50,000 Loss on sale of investment Required: a. Prepare an income statement for the year using the "functional" method with supporting notes. b. Prepare an income statement for the year using the "natural" method with supporting notes.
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