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An inexperienced accountant prepared this condensed income statement for Carla Vista Co . , a retail firm that has been in business for a number
An inexperienced accountant prepared this condensed income statement for Carla Vista Co a retail firm that has been in business for a number of years. Carla Vista Co Income Statement For the Year Ended December Revenues Net sales Other revenues $ Cost of goods sold Gross profit Operating expenses Selling expenses Administrative expenses Net earnings $ As an experienced, knowledgeable accountant, you review the statement and determine the following facts. Net sales consist of sales $ less freightout on merchandise sold $ and sales returns and allowances $ Other revenues consist of sales discounts $ and rent revenue $ Selling expenses consist of salespersons' salaries $ depreciation on equipment $ advertising $ and sales commissions $ The commissions represent commissions paid. At December $ of commissions have been earned by salespersons but have not been paid. All compensation should be recorded as Salaries and Wages Expense. Administrative avnancos conciat Saffrasalass tE Ouestion of E dividends $ utilities $ interest expense $ and rent expense $ which includes prepayments totaling $ for the first quarter of Prepare a correct detailed multiplestep income statement. Assume a tax rate. List other revenues before other expenses. Round answers to decimal places, eg Enter negative amounts using either a negative sign preceding the number eg or parentheses eg CARLA VISTA CO Income Statement e
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