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The following are selected ledger accounts of Monty Corporation at December 31, 2017. Cash $187,750 Salaries and wages expense (sales) $286,750 Inventory 537,750 Salaries and
The following are selected ledger accounts of Monty Corporation at December 31, 2017.
Cash | $187,750 | Salaries and wages expense (sales) | $286,750 | |||
Inventory | 537,750 | Salaries and wages expense (office) | 348,750 | |||
Sales revenue | 4,277,750 | Purchase returns | 17,750 | |||
Unearned sales revenue | 119,750 | Sales returns and allowances | 81,750 | |||
Purchases | 2,788,750 | Freight-in | 74,750 | |||
Sales discounts | 36,750 | Accounts receivable | 145,250 | |||
Purchase discounts | 29,750 | Sales commissions | 85,750 | |||
Selling expenses | 71,750 | Telephone and Internet expense (sales) | 19,750 | |||
Accounting and legal services | 35,750 | Utilities expense (office) | 34,750 | |||
Insurance expense (office) | 26,750 | Miscellaneous office expenses | 10,750 | |||
Advertising expense | 56,750 | Rent revenue | 242,750 | |||
Delivery expense | 95,750 | Casualty loss (before tax) | 72,750 | |||
Depreciation expense (office equipment) | 50,750 | Interest expense | 178,750 | |||
Depreciation expense (sales equipment) | 38,750 | Common stock ($10 par) | 902,750 |
Montys effective tax rate on all items is 34%. A physical inventory indicates that the ending inventory is $688,750. Prepare a condensed 2017 income statement for Monty Corporation. (Round earnings per share to 2 decimal places, e.g. 1.48.)
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