Condensed Income Statement€”Periodic Inventory Method Presented below are selected ledger accounts of Woods Corporation at December 31, 2010.

Woods€™s effective tax rate on all items is 30%. A physical inventory indicates that the ending inventory is $686,000.
Instructions
Prepare a 2010 income statement for WoodsCorporation.

Transcribed Image Text:

$ 185,000 Cash Sales salanes $284,000 Marchandise inventory. beginning Sales 348,000 4,175,000 Purchase returns 15,000 Advances trom customers Purchasos Sales discounte 117,000 2,786,000 Salos returns 79,000 Transportation-in Accounts receivabia 142,500 27,000 33,000 Purchase ciscounts Sales commissiens Travel and entertanmert-sales Accounting and legal services Insurance expense-office Advertising Transportation-aut Depreciation of oflico equipment Depreciation of rales equipment Telephone-sales 17.000 32,000 33,000 Utilibes-office Miscellaneous office expanses Rental revonue Loss on sale of divisiors Interast axpanse Sharo enpital-crdinary (S10 pari 24,000 54.000 91,000 13,000 36,000 8,000 240,000 60,000 176,000 S00,000