2. The unadjusted trial balance of S&M Corporation as on June 30, 2020 are as follows: Cash Inventory Sales revenue Unearned sales revenue Purchases Sales discounts Purchase discounts Selling expenses Accounting and legal services Insurance expense (office) Advertising expense Delivery expense Depreciation expense (office equipment) Depreciation expense (sales equipment) S188,640 Salaries and wages expense (sales) 538,640 Salaries and wages expense (office) 4,278,640 Purchase returns 120,640 Sales returns and allowances 2,789,640 Freight-in 37,640 Accounts receivable 30,640 Sales commissions 72,640 Telephone and Internet expense (sales) 36,640 Utilities expense (office) 27,640 Miscellaneous office expenses 57,640 Rent revenue 96,640 Extraordinary loss (before tax) 51,640 Interest expense 39,640 Common stock ($10 par) $287,640 349,640 18,640 82,640 75,640 146,140 86,640 20,640 35,640 11,640 243,640 73,640 179,640 903,640 S&M's effective tax rate on all items is 30%. A physical inventory indicates that the ending inventory is $689,640.

2. The unadjusted trial balance of S&M Corporation as on June 30, 2020 are as follows: Cash Inventory Sales revenue Unearned sales revenue Purchases Sales discounts Purchase discounts Selling expenses Accounting and legal services Insurance expense (office) Advertising expense Delivery expense Depreciation expense (office equipment) Depreciation expense (sales equipment) S188,640 Salaries and wages expense (sales) 538,640 Salaries and wages expense (office) 4,278,640 Purchase returns 120,640 Sales returns and allowances 2,789,640 Freight-in 37,640 Accounts receivable 30,640 Sales commissions 72,640 Telephone and Internet expense (sales) 36,640 Utilities expense (office) 27,640 Miscellaneous office expenses 57,640 Rent revenue 96,640 Extraordinary loss (before tax) 51,640 Interest expense 39,640 Common stock ($10 par) $287,640 349,640 18,640 82,640 75,640 146,140 86,640 20,640 35,640 11,640 243,640 73,640 179,640 903,640 S&M's effective tax rate on all items is 30%. A physical inventory indicates that the ending inventory is $689,640.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter12: Corporations: Organization, Capital Structure, And Operating Rules

Section: Chapter Questions

Problem 34P

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