Required Information [The following information applies to the questions displayed below.] 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 1. Net sales 2. Gain on state's condemnation of company property 3. Cost of goods sold 4. Income tax expense 5. Depreciation expense 6. Gain on sale of wholesale business segment, net of tax 7. Loss from operating wholesale business segment, net of tax 8. Loss of assets from meteor strike Debit $ 1,735,000 254,000 272,000 521,000 750,000 Credit $3,400,000 270,000 909,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required Information
[The following information applies to the questions displayed below.]
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
1. Net sales
2. Gain on state's condemnation of company property
3. Cost of goods sold
4. Income tax expense
5. Depreciation expense
6. Gain on sale of wholesale business segment, net of tax
7. Loss from operating wholesale business segment, net of tax
8. Loss of assets from meteor strike
Net sales
Expenses:
RANDA MERCHANDISING, INCORPORATED
Income Statement
For Year Ended December 31
Total operating expenses
Other unusual and/or infrequent gains (losses)
Discontinued segment:
Debit
$ 1,735,000
254,000
272,000
Prepare the December 31 year-end Income statement. (Loss amounts should be indicated with a minus sign.)
521,000
750,000
Credit
$ 3,400,000
270,000
909,000
Transcribed Image Text:Required Information [The following information applies to the questions displayed below.] 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 1. Net sales 2. Gain on state's condemnation of company property 3. Cost of goods sold 4. Income tax expense 5. Depreciation expense 6. Gain on sale of wholesale business segment, net of tax 7. Loss from operating wholesale business segment, net of tax 8. Loss of assets from meteor strike Net sales Expenses: RANDA MERCHANDISING, INCORPORATED Income Statement For Year Ended December 31 Total operating expenses Other unusual and/or infrequent gains (losses) Discontinued segment: Debit $ 1,735,000 254,000 272,000 Prepare the December 31 year-end Income statement. (Loss amounts should be indicated with a minus sign.) 521,000 750,000 Credit $ 3,400,000 270,000 909,000
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