Question
The following are selected ledger accounts of Spock Corporation at December 31, 2014. Cash $186,060 Salaries and wages expense (sales) $285,060 Inventory 536,060 Salaries and
The following are selected ledger accounts of Spock Corporation at December 31, 2014. Cash $186,060 Salaries and wages expense (sales) $285,060 Inventory 536,060 Salaries and wages expense (office) 347,060 Sales revenue 4,276,060 Purchase returns 16,060 Unearned sales revenue 118,060 Sales returns and allowances 80,060 Purchases 2,787,060 Freight-in 73,060 Sales discounts 35,060 Accounts receivable 143,560 Purchase discounts 28,060 Sales commissions 84,060 Selling expenses 70,060 Telephone and Internet expense (sales) 18,060 Accounting and legal services 34,060 Utilities expense (office) 33,060 Insurance expense (office) 25,060 Miscellaneous office expenses 9,060 Advertising expense 55,060 Rent revenue 241,060 Delivery expense 94,060 Extraordinary loss (before tax) 71,060 Depreciation expense (office equipment) 49,060 Interest expense 177,060 Depreciation expense (sales equipment) 37,060 Common stock ($10 par) 901,060 Spocks effective tax rate on all items is 30%. A physical inventory indicates that the ending inventory is $687,060. Prepare a condensed 2014 income statement for Spock Corporation.
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