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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

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BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
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Basic Income Statement The following are selected account balances of Rule Corporation at the end of the current year:

Chapter 3, Problem 7E, Basic Income Statement The following are selected account balances of Rule Corporation at the end of

Rule is subject to a 30% income tax rate, and shareholders own 800 shares of its capital stock.

Required:

Prepare the income statement for Rule.

To determine

Prepare the income statement for Company R.

Explanation

Income statement: The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement.

Prepare the income statement for Company R:

Company R
Income statement
For the year ended December 31, Current year
Particulars$$
Sales revenue 15,600
Less: Cost of goods sold (8,300)
    Gross profit 7,300
Less: Operating expense (3,800)
    Income from operations 3,500
Other items:  
     Less: Interest expense(800) 
     Add: Gain on sale of land

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