Exercise 4 11 The following are selected ledger accounts of Headland Corporation at December 31, 2017 Cash $188,800 Salaries and wages expense (sales) $287,800 Inventory 538,800 Salaries and wages expense (office) 349,800 Sales revenue 4,278,800 Purchase returns 18,800 Unearned sales revenue 120,800 Sales returns and allowances 82,800 Purchases 2,789,800 Freight in 75,800 Sales discounts 37,800 Accounts receivable 146,300 Purchase discounts 30,800 Sales commissions 86,800 Selling expenses 72,800 Telephone and Internet expense (sales) 20,800 Accounting and legal services 36,800 Utilities expense (office) 35,800 Insurance expense (office) 27,800 Miscellaneous office expenses 11,800 Advertising expense 57,800 Rent revenue 243,800 Delivery expense 96,800 Casualty loss (before tax) 73,800 Depreciation expense (office equipment) 51,800 Interest expense 179,800 Depreciation expense (sales equipment) 39,800 Common stock ($10 par) 903,800 Headlands effective tax rate on all items is 34 A physical inventory indicates that the ending inventory is $689,800 Prepare a condensed 2017 income statement for Headland Corporation HEADLAND CORPORATION Income Statement For the Year Ended Dec Net Sales 4158200 Cost of Goods Sold 2665000 1493200 Gross Profit (Loss) Administrative Expenses Selling Expenses 613400 565000 1178400 Income From Operation 314800 Income Before Income Net Income (Loss)

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 28, 2024

Exercise 4-11 The following are selected ledger accounts of Headland Corporation at December 31, 2017. Cash $188,800 Salaries and wages expense (sales) $287,800 Inventory 538,800

Exercise 4-11

The following are selected ledger accounts of Headland Corporation at December 31, 2017.

Cash	$188,800	Salaries and wages expense (sales)	$287,800
Inventory	538,800	Salaries and wages expense (office)	349,800
Sales revenue	4,278,800	Purchase returns	18,800
Unearned sales revenue	120,800	Sales returns and allowances	82,800
Purchases	2,789,800	Freight-in	75,800
Sales discounts	37,800	Accounts receivable	146,300
Purchase discounts	30,800	Sales commissions	86,800
Selling expenses	72,800	Telephone and Internet expense (sales)	20,800
Accounting and legal services	36,800	Utilities expense (office)	35,800
Insurance expense (office)	27,800	Miscellaneous office expenses	11,800
Advertising expense	57,800	Rent revenue	243,800
Delivery expense	96,800	Casualty loss (before tax)	73,800
Depreciation expense (office equipment)	51,800	Interest expense	179,800
Depreciation expense (sales equipment)	39,800	Common stock ($10 par)	903,800

Headlands effective tax rate on all items is 34%. A physical inventory indicates that the ending inventory is $689,800. Prepare a condensed 2017 income statement for Headland Corporation.

image text in transcribed

HEADLAND CORPORATION Income Statement For the Year Ended Dec Net Sales 4158200 Cost of Goods Sold 2665000 1493200 Gross Profit / (Loss) Administrative Expenses Selling Expenses 613400 565000 1178400 Income From Operation 314800 Income Before Income Net Income (Loss)