newconnect.mheducation.com Portai- Home Page Discussion Board-201740 Fall 2017 A

ID: 2562891 • Letter: N

Question

newconnect.mheducation.com Portai- Home Page Discussion Board-201740 Fall 2017 ACCT Connect l Guided Solutions and Homework 1 0 Yahoo Ma Saved Help Save & Exit Submit Check my wark In 2017, Randa Merchandising, Inc., sold its interest in a chain of wholesale outlets, taking wholesaling business. The company still operates its retail outlets. A the company completely out of the listing of the major sections of an income statement follows Item 1. Net sales 2. Gain on state's 3. Cost of goods sold 4. Incone taxes expense 5. Depreciation expense 6. Gain on sale of wholesale business segment, net of tax 7. Loss from operating wholesale business segment, net of tax 8. loss o& assets from eteor strike, net of tax Credit s 3, 040,000 272,000 points of company property, net of tax 1 551,448 219 000 250 000 eBook Hint Print 762 500 431,000 642,000 Prepare the income statement for calendar year 2017 (Loss amounts should be indicated with a minus sign.) INC Income Statement For Year Ended December 31, 2017 Net sales 3.040,000 Cost of goods sold S1,551,448 250,000 1.801.448 Total operating expenses 1.238,552

Explanation / Answer

Income Statement

Particuars

Amount

Net Sales

3040000

Expenses:

Cost of Goods Sold

1551448

Depreciation Expense

250000

Total Expenses

1801448

Income from continuing operations before taxes

1238552

Income tax Expense

219000

Income from continuing operations

1019552

Discontinued Segment:

Loss from operating wholesale business segment

-471000

Gain on sale of wholesale business segment

762500

291500

Income before extraordinary gain

1311052

Extraordinary gain on condemnation of company propert

272000

Loss of assets from meteor strike

-642000

-370000

Net Income

941052