Presented below are selected ledger accounts of Woods Corporation at December 31, 2012.
- Cash $185,000 Sales salaries $291,500
- Merchandise inventory 539,500 Office salaries 355,800
- Sales 4,298,200 Purchase returns 15,000
- Advances from customers 117,000 Sales returns 79,000
- Purchases 2,786,000 Transportation-in 72,000
- Sales discounts 34,000 Accounts receivable 142,500
- Purchase discounts 27,000 Sales commissions 83,000
- Travel and entertainment 69,000 Telephone-sales 17,000
- Accounting and legal services 33,000 Utilities-office 32,000
- Insurance expense-office 24,000 Miscellaneous office expenses 8,000
- Advertising 54,000 Rental revenue 240,000
- Transportation-out 93,000 Extraordinary loss (before tax) 70,000
- Depreciation of office equipment 48,000 Interest expense 176,000
- Depreciation of sales equipment 36,000 Common stock ($10 par) 900,000
- Woods's effective tax rate on all items is 34%. A physical inventory indicates that the ending inventory is $689,300.
- Prepare a condensed 2012 income statement for Woods Corporation