Select information below is taken from the December 31, 2020 adjusted trial balance of Rummer Company: Freight-in General and administrative expenses Interest expense Inventory Loss on sale of a major component of the business (pretax) Purchases Purchases returns Sales Sales discounts Selling expenses $7,500 50,000 15,000 165,000 15,000 330,000 5,000 700,000 10,000 25,000 The inventory on January 1 was $140,000. The income tax rate is 30%. There were 25,000 shares of common stock outstanding throughout the year. Required: a. Prepare a schedule of the cost of goods sold. b. Prepare a 2020 income statement for Rummer Company, using a multiple-step format (disregard earnings per share). c. Prepare a 2020 income statement for Rummer Company, using a single-step format (disregard earnings per share).
Select information below is taken from the December 31, 2020 adjusted trial balance of Rummer Company: Freight-in General and administrative expenses Interest expense Inventory Loss on sale of a major component of the business (pretax) Purchases Purchases returns Sales Sales discounts Selling expenses $7,500 50,000 15,000 165,000 15,000 330,000 5,000 700,000 10,000 25,000 The inventory on January 1 was $140,000. The income tax rate is 30%. There were 25,000 shares of common stock outstanding throughout the year. Required: a. Prepare a schedule of the cost of goods sold. b. Prepare a 2020 income statement for Rummer Company, using a multiple-step format (disregard earnings per share). c. Prepare a 2020 income statement for Rummer Company, using a single-step format (disregard earnings per share).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Select information below is taken from the December 31, 2020 adjusted trial balance of Rummer Company:
Freight-in
General and administrative expenses
Interest expense
Inventory
Loss on sale of a major component of the business (pretax)
Purchases
Purchases returns.
Sales
Sales discounts
Selling expenses
$7,500
50,000
15,000
165,000
15,000
330,000
5,000
700,000
10,000
25,000
The inventory on January 1 was $140,000. The income tax rate is 30%. There were 25,000 shares of common stock outstanding throughout the year.
Required:
a. Prepare a schedule of the cost of goods sold.
b. Prepare a 2020 income statement for Rummer Company, using a multiple-step format (disregard earnings per share).
c. Prepare a 2020 income statement for Rummer Company, using a single-step format (disregard earnings per share).
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