Karla Company provided the following information for the current year: Purchases 5,250,000 Purchase returns and allowance 150,000 Rental income 250,000 Freight out 175,000 Sales commission 650,000 Depreciation -store equipment 125,000 Inventory, Jan. 1 1,000,000 Inventory, Dec. 31 1,500,000 Sales 7,850,000 Sales returns and allowances 140,000 Sales discounts 10,000 Officers' salaries 500,000 Depreciation -office equipment Freight in 300,000 500,000 Income tax 250,000 Loss on sale of equipment 50,000 Purchase discounts 100,000 Dividend revenue 150,000 Loss on sale of investment 50,000 1. Prepare Income Statement for the year using functional presentation with supporting notes 2. Prepare Income Statement for the year using natural presentation with supporting notes

Karla Company provided the following information for the current year: Purchases 5,250,000 Purchase returns and allowance 150,000 Rental income 250,000 Freight out 175,000 Sales commission 650,000 Depreciation -store equipment 125,000 Inventory, Jan. 1 1,000,000 Inventory, Dec. 31 1,500,000 Sales 7,850,000 Sales returns and allowances 140,000 Sales discounts 10,000 Officers' salaries 500,000 Depreciation -office equipment Freight in 300,000 500,000 Income tax 250,000 Loss on sale of equipment 50,000 Purchase discounts 100,000 Dividend revenue 150,000 Loss on sale of investment 50,000 1. Prepare Income Statement for the year using functional presentation with supporting notes 2. Prepare Income Statement for the year using natural presentation with supporting notes

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...

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