In 2011, Jin Merchandising, Inc., sold its interest in a chain of retail outlets, taking the company completely out of the retailing business. The company still operates its wholesale outlets. A listing of the major sections of an income statement follows:
A. Income (loss) from continuing operations
B. Income (loss) from operating, or gain (loss) from disposing, a discontinued segment
C. Extraordinary gain (loss)
Indicate where each of the following income related items for this company appears on its 2011 income statement by writing the letter of the appropriate section in the blank beside each item.
|
Section |
Item |
Debit |
Credit |
|
1. |
Net sales |
|
$3,000,000 |
|
2. |
Gain on state’s condemnation |
|
|
|
|
of company property (net of tax) |
|
330,000 |
|
3. |
Salaries expense |
$ 640,000 |
|
|
4. |
Income taxes expense |
117,000 |
|
|
5. |
Depreciation expense |
432,500 |
|
|
6. |
Gain on sale of retail business |
|
|
|
|
segment (net of tax) |
|
875,000 |
|
7. |
Loss from operating retail business |
|
|
|
|
segment (net of tax) |
544,000 |
|
|
8. |
Cost of goods sold |
1,580,000 |
|