Income statement by using a condensed income statementmethod

Question

Mellville Corporation provided the following partial-trial balance for the current yearPrepare a single-step income statement for the year ended December 31. Melville is subject to a 40% income tax rate Melville Corporation Trial Balance (Selected Accounts) For the Year Ended December 31 Account Debit Credit Dividends $1,400 Sales $120,000 Dividend Income 590 Interest Income 900 Gain on Disposal of Plant Assets 1,100 Unrealized Gain on Trading Investments 1,700 Cost of Goods Sold 45,000 Office Supplies Expense 4,100 Sales Salaries Expense 3,300 Selling Expenses 15,000 Accounting and Legal Fees—General Expense 830 Advertising Expense 3,800 Office Salaries Expense 6,600 Depreciation Expense—General Expense 9,400 Interest Expense 2,200 Loss on Asset Impairment 2,400 Revenue and Gains…

Answer 1

Question

Chapter 5, Problem 5.3E

a.

To determine

Income statement by using a condensed income statementmethod

b.

To determine

To prepare: The footnote in supporting of statement of net income.

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Mellville Corporation provided the following partial-trial balance for the current yearPrepare a single-step income statement for the year ended December 31. Melville is subject to a 40% income tax rate Melville Corporation Trial Balance (Selected Accounts) For the Year Ended December 31 Account Debit Credit Dividends $1,400 Sales $120,000 Dividend Income 590 Interest Income 900 Gain on Disposal of Plant Assets 1,100 Unrealized Gain on Trading Investments 1,700 Cost of Goods Sold 45,000 Office Supplies Expense 4,100 Sales Salaries Expense 3,300 Selling Expenses 15,000 Accounting and Legal Fees—General Expense 830 Advertising Expense 3,800 Office Salaries Expense 6,600 Depreciation Expense—General Expense 9,400 Interest Expense 2,200 Loss on Asset Impairment 2,400 Revenue and Gains…

Melville Corporation provided the following partial-trial balance for the current year Prepare a single-step income statement for the year ended December 31. Melville is subject to a 40% income tax rate. (Round all amounts to the nearest whole dollar.) Melville Corporation Trial Balance (Selected Accounts) For the Year Ended December 31 Account Debit Credit Dividends $1,400 Sales $120,000 Dividend Income 590 Interest Income 900 Gain on Disposal of Plant Assets 1,100 Unrealized Gain on Trading Investments 1,700 Cost of Goods Sold 45,000 Office Supplies Expense 4,100 Sales Salaries Expense 3,300 Selling Expenses 15,000 Accounting and Legal Fees—General Expense 830 Advertising Expense 3,800 Office Salaries Expense 6,600 Depreciation Expense—General Expense 9,400 Interest Expense 2,200 Loss on Asset Impairment 2,400

Selected income statement data follow for Harper, Inc., for the year ended December 31 (in thousands). What is the company's times interest earned ratio? Income before provision for income taxes $1,025959 Interest expense $29,670 Statutory tax rate 37% Provision for income taxes $322,410 Net income $693,548