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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.
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