Use the financial data for Randa Merchandising, Inc., in Exercise 13-13 to prepare its income statement for calendar-year 2017. (Ignore the earnings per share section.)

Data From Exercise 13.13

In 2017, Randa Merchandising, Inc., sold its interest in a chain of wholesale outlets, taking the company
completely out of the wholesaling business. The company still operates its retail outlets. A listing of the
major sections of an income statement follows:
A. Net sales less operating expense section
B. Other unusual and/or infrequent gains (losses)
C. Taxes reported on income (loss) from continuing operations
D. Income (loss) from operating a discontinued segment, or gain (loss) from its disposal
Indicate where each of the following income-related items for this company appears on its 2017 income
statement by writing the letter of the appropriate section in the blank beside each item.

Transcribed Image Text:

Section 1. Net sales. 2. Gain on state's condemnation of company property 3. Cost of goods sold.... Item Debit Credit $2,900,000 230,000 $1,480,000 4. Income taxes expense. 217,000 5. Depreciation expense 232,000 6. Gain on sale of wholesale business segment, net of tax. 775,000 7. Loss from operating wholesale business segment, net of tax...... 444,000 8. Loss of assets from meteor strike. 640,000