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Presented below are selected ledger accounts of Woods Corporation at December 31, 2015. Cash S185,000 Salaries and wages expense (sales) $284,000 Inventory (beginning) 535,000 Salaries

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Presented below are selected ledger accounts of Woods Corporation at December 31, 2015. Cash S185,000 Salaries and wages expense (sales) $284,000 Inventory (beginning) 535,000 Salaries and wages expense (office) 346,000 Sales revenue 4,175,000 Purchase returns 15,000 Uneamed sales revenue 117,000 Sales returns and allowance 79,000 Purchases 2,786,000 Freight-in 72.000 Sales discounts 34,000 Accounts receivable 142,500 Purchase discounts 27,000 Sales commissions 83,000 Selling expenses 69,000 Telephone and Internet expense 17,000 (sales) Accounting and legal services 33,000 Utilities expense (office) 32,000 Insurance expense (office) 24,000 Miscellaneous office expenses 8,000 Advertising expense 54,000 Rent revenue 240,000 Delivery expense 93,000 Loss on sale of division 60,000 Depreciation expense (office 48,000 Interest expense 176,000 equipment) Depreciation expense (sales 36,000 Share capital ordinary (s10 par) 900,000 equipment) Woods's effective tax rate on all items is 30%. A physical inventory indicates that the ending inventory is $686,000. Requirement: Prepare a 2015 income statement for Woods Corporation 2015 Question 2: (12 marks) The following information was taken from the records of Vega Inc. for the year 2015: income tax applicable to income from continuing operations R$119,000, income tax applicable to loss on discontinued operations R$25,500, and unrealized holding gain on non-trading equity securities R$ 15,000. Gain on sale of plant assets R$95,000 Cash dividends declared RS150,000 Loss on discontinued operations 75,000 Retained earnings January 1, 600,000 Administrative expenses 240,000 Cost of goods sold 850,000 Rent revenue 40,000 Selling expenses 300,000 Loss on impairment of land 60,000 Sales revenue 1,700,000 Ordinary shares outstanding during 2015 were 100,000. Requirement: a) Prepare a comprehensive income statement for 2015 using the one statement approach (8 marks) b) Prepare a retained earnings statement for 2015. (4 marks)

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