(Multiple Step and Extraordinary Items) The following balances were taken from the books of Parnevik Corp. on December 31, 2012.
|
Interest revenue |
$ 86,000 |
Accumulated depreciation—buildings |
$ 28,000 |
|
Cash |
51,000 |
Notes receivable |
155,000 |
|
Sales revenue |
1,280,000 |
Selling expenses |
194,000 |
|
Accounts receivable |
150,000 |
Accounts payable |
170,000 |
|
Prepaid insurance |
20,000 |
Bonds payable |
100,000 |
|
Sales returns and allowances |
150,000 |
Office expenses |
97,000 |
|
Allowance for doubtful accounts |
7,000 |
Accrued liabilities |
32,000 |
|
Sales discounts |
45,000 |
Interest expense |
60,000 |
|
Land |
100,000 |
Notes payable |
100,000 |
|
Equipment |
200,000 |
Loss from earthquake damage (extraordinary item) |
120,000 |
|
Buildings |
140,000 |
||
|
Cost of goods sold |
621,000 |
Common stock |
500,000 |
|
Accumulated depreciation—equipment |
40,000 |
Retained earnings |
21,000 |
Assume the total effective tax rate on all items is 34%.
Instructions
Prepare a multiple step income statement; 100,000 shares of common stock were outstanding during the year.