The following are selected ledger accounts of Spock Corporation at December 31, 2020.

Spock?s effective tax rate on all items is 20%. A physical inventory indicates that the ending inventory is $686,000.

Instructions

Prepare a condensed 2020 income statement for Spock Corporation.

Transcribed Image Text:

Cash $ 185,000 Salaries and wages expense (sales) Salaries and wages expense (office) Purchase returns Sales returns and allowances $284,000 Inventory 346,000 Sales revenue Unearned sales revenue Purchases Sales discounts Purchase discounts Selling expenses Accounting and legal services Insurance expense (office) Advertising expense 4,275,000 15,000 117,000 2,786,000 79,000 72,000 Freight-in Accounts receivable 34,000 27,000 Sales commissions 69,000 33,000 24,000 54,000 142,500 83,000 17,000 Telephone and Internet expense (sales) Utilities expense (office) Miscellaneous office expenses Rent revenue 32,000 8,000 240,000 Delivery expense Depreciation expense (office equipment) Depreciation expense (sales equipment) $ 93,000 48,000 36,000 Casualty loss (before tax) Interest expense Common stock ($10 par) $ 70,000 176,000 900,000