The following are selected ledger accounts of Holland Rose Corporation at December 31, 2014:

Holland's effective tax rate on all items is 25%. A physical inventory indicates that the ending inventory is $686,000. The number of common shares outstanding is 90,000.
Instructions
Prepare a multi-step 2014 income statement for Holland Rose Corporation, showing expenses by function. Include calculation of EPS.

Transcribed Image Text:

69,000 33,000 24,000 54,000 93,000 48,000 36,000 17,000 32,000 8,000 240,000 70,000 176,000 900,000 $ 185,000 535,000 4,275,000 117,000 Cash Inventory (as of Jan. 1, 2014) Sales revenue Unearned revenue Purchases Sales discounts Purchase discounts Salaries and wages (sales) Salaries and wages (administrative) Purchase returns and allowances Sales returns and allowances Freight-in Accounts receivable Sales commission expense Entertainment expense Office expense Insurance expense Advertising expense 2,786,000 right-out 34,000 27,000 284,000 346,000 15,000 79,000 72,000 142,500 83,000 Depreciation of office equipment Depreciation of sales equipment Telephone and Internet expense (sales,) Utilities expense (administrative) Miscellaneous expense Rental revenue Loss on disposal of equipment Interest expense Common shares