Basic Income Statement

The following are selected account balances of Rule Corporation at the end of the current year:

		Debit		Credit
Operating Expenses		$3,900
Sales Revenue				$18,200
Cost of Goods Sold		8,000
Interest Expense		770
Gain on Sale of Land				580

Rule is subject to a 30% income tax rate, and shareholders own 1,300 shares of its capital stock.

Required:

Prepare the income statement for Rule.

RULE CORPORATION
Income Statement
For the Year Ended December 31, Current Year
Sales revenue		$fill in the blank 2
Cost of goods sold		fill in the blank 4
Gross profit		$fill in the blank 6
Operating expenses		fill in the blank 8
Income from operations		$fill in the blank 10
Other items:
Interest expense	$fill in the blank 12
Gain on sale of land	fill in the blank 14	fill in the blank 15
Income before income taxes		$fill in the blank 17
Income tax expense		fill in the blank 19
Net income		$fill in the blank 21
Earnings per share		$fill in the blank 22