Question
Gloria J Company provided the following information for 2019. Purchases 5,250,000.00 Purchases returns and allowances 150,000.00 Rental income 250,000.00 Selling expenses: Freight out 175,000.00 Salesmens
- Gloria J Company provided the following information for 2019.
| Purchases | 5,250,000.00 |
| Purchases returns and allowances | 150,000.00 |
| Rental income | 250,000.00 |
| Selling expenses: |
|
| Freight out | 175,000.00 |
| Salesmens commission | 650,000.00 |
| Depreciation store equipment | 125,000.00 |
| Merchandise inventory, January 1 | 1,000,000.00 |
| Merchandise inventory, December 31 | 1,500,000.00 |
| Sales | 7,850,000.00 |
| Sales returns and allowances | 140,000.00 |
| Sales discounts | 10,000.00 |
| Administrative expenses |
|
| Officers salaries | 500,000.00 |
| Depreciation office equipment | 300,000.00 |
| Freight in | 500,000.00 |
| Income tax | 250,000.00 |
| Loss on sale of equipment | 50,000.00 |
| Purchase discounts | 100,000.00 |
| Dividend revenue | 150,000.00 |
| Loss on sale of investment | 50,000.00 |
Required: Prepare an income statement using functional method for the year with supporting notes.
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
