roblem 17-6AA Income statement computations and format LO A2 Skip to question [The following information applies to the questions displayed below.] Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31 follow. Debit Credit a. Interest revenue $ 15,900 b. Depreciation expense—Equipment $ 35,900 c. Loss on sale of equipment 27,750 d. Accounts payable 45,900 e. Other operating expenses 108,300 f. Accumulated depreciation—Equipment 73,500 g. Gain from settlement of lawsuit 45,900 h. Accumulated depreciation—Buildings 178,300 i. Loss from operating a discontinued segment (pretax) 20,150 j. Gain on insurance recovery of tornado damage 31,020 k. Net sales 1,017,500 l. Depreciation expense—Buildings 53,900 m. Correction of overstatement of prior year’s sales (pretax) 17,900 n. Gain on sale of discontinued segment’s assets (pretax) 43,500 o. Loss from settlement of lawsuit 25,650 p. Income tax expense ? q. Cost of goods sold 501,500

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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Problem 17-6AA Income statement computations and format LO A2

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[The following information applies to the questions displayed below.]

Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31 follow.

		Debit	Credit
a.	Interest revenue			$	15,900
b.	Depreciation expense—Equipment	$	35,900
c.	Loss on sale of equipment		27,750
d.	Accounts payable				45,900
e.	Other operating expenses		108,300
f.	Accumulated depreciation—Equipment				73,500
g.	Gain from settlement of lawsuit				45,900
h.	Accumulated depreciation—Buildings				178,300
i.	Loss from operating a discontinued segment (pretax)		20,150
j.	Gain on insurance recovery of tornado damage				31,020
k.	Net sales				1,017,500
l.	Depreciation expense—Buildings		53,900
m.	Correction of overstatement of prior year’s sales (pretax)		17,900
n.	Gain on sale of discontinued segment’s assets (pretax)				43,500
o.	Loss from settlement of lawsuit		25,650
p.	Income tax expense		?
q.	Cost of goods sold		501,500

Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31
follow.
Debit
Credit
a. Interest revenue
15,900
$ 35,900
b. Depreciation expense-Equipment
c. Loss on sale of equipment
d. Accounts payable
e. Other operating expenses
f. Accumulated depreciation-Equipment
g. Gain from settlement of lawsuit
h. Accumulated depreciation-Buildings
i. Loss from operating a discontinued segment (pretax)
j. Gain on insurance recovery of tornado damage
27,750
45,900
108,300
73,500
45,900
178,300
20,150
31,020
1,017,500
k. Net sales
1. Depreciation expense-Buildings
m. Correction of overstatement of prior year's sales (pretax)
n. Gain on sale of discontinued segment's assets (pretax)
o. Loss from settlement of lawsuit
p. Income tax expense
q. Cost of goods sold
53,900
17,900
43,500
25,650
501,500
Problem 17-6AA Part 4
4. What is the amount of net income for the year?
Net income

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