Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following are selected ledger accounts of Crane Corporation at December 31, 2020. Cash $166,500 Salaries and wages expense (sales) $255,600 Inventory 481,500 Salaries and

The following are selected ledger accounts of Crane Corporation at December 31, 2020.

Cash $166,500 Salaries and wages expense (sales) $255,600
Inventory 481,500 Salaries and wages expense (office) 311,400
Sales revenue 3,847,500 Purchase returns 13,500
Unearned sales revenue 105,300 Sales returns and allowances 71,100
Purchases 2,507,400 Freight-in 64,800
Sales discounts 30,600 Accounts receivable 128,250
Purchase discounts 24,300 Sales commissions 74,700
Selling expenses 62,100 Telephone and Internet expense (sales) 15,300
Accounting and legal services 29,700 Utilities expense (office) 28,800
Insurance expense (office) 21,600 Miscellaneous office expenses 7,200
Advertising expense 48,600 Rent revenue 216,000
Delivery expense 83,700 Casualty loss (before tax) 63,000
Depreciation expense (office equipment) 43,200 Interest expense 158,400
Depreciation expense (sales equipment) 32,400 Common stock ($10 par) 792,400

Cranes effective tax rate on all items is 20%. A physical inventory indicates that the ending inventory is $686,000. Prepare a condensed 2020 income statement for Crane Corporation.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost management a strategic approach

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

5th edition

73526940, 978-0073526942

More Books

Students also viewed these Accounting questions

Question

Distinguish between independent contractors and employees.

Answered: 1 week ago

Question

2. How will growth influence Room & Boards selection policies?]

Answered: 1 week ago