In the current year, a company sold (discontinued) its physical stores, taking the company's business entirely online.ItemDebitCreditOther selling, general, and administrative expenses$174,000 Net sales $ 3,100,000Cost of goods sold$ 1,582,069 Income tax expense226,000 Depreciation expense97,500 Income from operating physical store segment, net of tax 780,000Loss from sale of physical store segment, net of tax463,000 Loss of assets from earthquake damage to distribution center360,000 Prepare the December 31 year-end income statement.

Name: In the current year, a company sold (discontinued) its physical stores
Uploaded: 2024-03-04T10:43:15.000Z
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Description: In the current year, a company sold (discontinued) its physical stores, taking the company's business entirely online.ItemDebitCreditOther selling, general, and administrative expenses$174,000 Net sales $ 3,100,000Cost of goods sold$ 1,582,069 Income

Income statement calculates net income by deducting the expenses from it.

Answered: the current year, a company sold…

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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In the current year, a company sold (discontinued) its physical stores, taking the company's business entirely online.

Item	Debit	Credit
Other selling, general, and administrative expenses	$174,000
Net sales		$ 3,100,000
Cost of goods sold	$ 1,582,069
Income tax expense	226,000
Depreciation expense	97,500
Income from operating physical store segment, net of tax		780,000
Loss from sale of physical store segment, net of tax	463,000
Loss of assets from earthquake damage to distribution center	360,000

Prepare the December 31 year-end income statement.

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