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The information below pertains to the operations of Montreal Retail Corporation for the year ended 31 December 20X6: Cost of merchandise sold Inventory warehousing cost Accounts payable Sales revenue Accumulated depreciation Sales returns Unearned revenue Depreciation expense Rent revenue Employee wages, salaries, and benefits Interest expense Investment revenue Loss on disposal of geographic segment Earnings from discontinued geographic segment Distribution expenses General and administrative expenses Loss on sale of noncurrent assets Income tax expense Fire loss $115,000 33,000 133,000 655,000 153,000 6,300 3,300 63,000 5,300 113,000 7,300 4,300 43,000 33,000 119,000 59,000 14,300 ? 33,000 Additional information: • Functional costs do not include depreciation or employee costs. • Depreciation expense pertains 55% to warehousing cost, 30% to administrative costs, and 15% to distribution expense. • Employee wages, salaries, and benefits pertain 25% to warehousing and merchandising, 40% to administrative costs, and 35% to distribution expense. • The company's income tax rate is 25%. Assume that the tax rate pertains to all elements of revenue, expense, gain, and loss.

The information below pertains to the operations of Montreal Retail Corporation for the year ended 31 December 20X6: Cost of merchandise sold Inventory warehousing cost Accounts payable Sales revenue Accumulated depreciation Sales returns Unearned revenue Depreciation expense Rent revenue Employee wages, salaries, and benefits Interest expense Investment revenue Loss on disposal of geographic segment Earnings from discontinued geographic segment Distribution expenses General and administrative expenses Loss on sale of noncurrent assets Income tax expense Fire loss $115,000 33,000 133,000 655,000 153,000 6,300 3,300 63,000 5,300 113,000 7,300 4,300 43,000 33,000 119,000 59,000 14,300 ? 33,000 Additional information: • Functional costs do not include depreciation or employee costs. • Depreciation expense pertains 55% to warehousing cost, 30% to administrative costs, and 15% to distribution expense. • Employee wages, salaries, and benefits pertain 25% to warehousing and merchandising, 40% to administrative costs, and 35% to distribution expense. • The company's income tax rate is 25%. Assume that the tax rate pertains to all elements of revenue, expense, gain, and loss.

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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nces Required: 1. Prepare an income statement on the basis of nature of expense, using a single-step format. (Loss amounts should be indicated by a minus sign.) 2 Revenues and gains: Book Other expenses and losses: Print Total revenues and gains Expenses and losses: Operating and administrative expenses: Other expenses and losses: Total expenses and losses Earnings from continuing operations Show Transcribed Text Net income and comprehensive income ferences MONTREAL RETAIL CORPORATION Income Statement Year Ended 31 December 20X6 (in Canadian dollars) Net sales. 2. Prepare an income statement on a functional basis in a multiple-step format. (Loss amounts should be indicated by a minus sign.) Show Transcribed Text Net sales MONTREAL RETAIL CORPORATION Income Statement Year Ended 31 December 20X6 (in Canadian dollars) Operating and administrative expenses: Total operating and administrative expenses. Income from operations Other revenues and gains: Other expenses and losses: Show Transcribed Text 2. Prepare an income statement on a functional basis in a multiple-step format. (Loss amounts should be indicated by a minus sign.) Income from operations Other revenues and gains: Total operating and administrative expenses Other expenses and losses: Income before income tax MONTREAL RETAIL CORPORATION Income Statement Year Ended 31 December 20X6 (in Canadian dollars) 3 Income before discontinued operation 3 Net income and comprehensive income $ c 3 0 C 0 0 0 0 0 0 $ 0 0 0 0 0 0
Transcribed Image Text:nces Required: 1. Prepare an income statement on the basis of nature of expense, using a single-step format. (Loss amounts should be indicated by a minus sign.) 2 Revenues and gains: Book Other expenses and losses: Print Total revenues and gains Expenses and losses: Operating and administrative expenses: Other expenses and losses: Total expenses and losses Earnings from continuing operations Show Transcribed Text Net income and comprehensive income ferences MONTREAL RETAIL CORPORATION Income Statement Year Ended 31 December 20X6 (in Canadian dollars) Net sales. 2. Prepare an income statement on a functional basis in a multiple-step format. (Loss amounts should be indicated by a minus sign.) Show Transcribed Text Net sales MONTREAL RETAIL CORPORATION Income Statement Year Ended 31 December 20X6 (in Canadian dollars) Operating and administrative expenses: Total operating and administrative expenses. Income from operations Other revenues and gains: Other expenses and losses: Show Transcribed Text 2. Prepare an income statement on a functional basis in a multiple-step format. (Loss amounts should be indicated by a minus sign.) Income from operations Other revenues and gains: Total operating and administrative expenses Other expenses and losses: Income before income tax MONTREAL RETAIL CORPORATION Income Statement Year Ended 31 December 20X6 (in Canadian dollars) 3 Income before discontinued operation 3 Net income and comprehensive income $ c 3 0 C 0 0 0 0 0 0 $ 0 0 0 0 0 0
S The information below pertains to the operations of Montreal Retail Corporation for the year ended 31 December 20X6: Cost of merchandise sold Inventory warehousing cost Accounts payable Sales revenue Accumulated depreciation Sales returns Unearned revenue Depreciation expense Rent revenue Employee wages, salaries, and benefits Interest expense Investment revenue Loss on disposal of geographic segment Earnings from discontinued geographic segment Distribution expenses General and administrative expenses Loss on sale of noncurrent assets Income tax expense Fire loss $115,000 33,000 133,000 655,000 153,000 6,300 3,300 63,000 5,300 113,000 7,300 4,300 43,000 33,000 119,000 59,000 14,300 ? 33,000 Additional information: • Functional costs do not include depreciation or employee costs. Depreciation expense pertains 55% to warehousing cost, 30% to administrative costs, and 15% to distribution expense. Employee wages, salaries, and benefits pertain 25% to warehousing and merchandising, 40% to administrative costs, and 35% to distribution expense. • The company's income tax rate is 25%. Assume that the tax rate pertains to all elements of revenue, expense, gain, and loss.
Transcribed Image Text:S The information below pertains to the operations of Montreal Retail Corporation for the year ended 31 December 20X6: Cost of merchandise sold Inventory warehousing cost Accounts payable Sales revenue Accumulated depreciation Sales returns Unearned revenue Depreciation expense Rent revenue Employee wages, salaries, and benefits Interest expense Investment revenue Loss on disposal of geographic segment Earnings from discontinued geographic segment Distribution expenses General and administrative expenses Loss on sale of noncurrent assets Income tax expense Fire loss $115,000 33,000 133,000 655,000 153,000 6,300 3,300 63,000 5,300 113,000 7,300 4,300 43,000 33,000 119,000 59,000 14,300 ? 33,000 Additional information: • Functional costs do not include depreciation or employee costs. Depreciation expense pertains 55% to warehousing cost, 30% to administrative costs, and 15% to distribution expense. Employee wages, salaries, and benefits pertain 25% to warehousing and merchandising, 40% to administrative costs, and 35% to distribution expense. • The company's income tax rate is 25%. Assume that the tax rate pertains to all elements of revenue, expense, gain, and loss.
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