The following are selected ledger accounts of Holland Rose Corporation at December 31, 2017:

Holland's effective tax rate on all items is 25%. A physical inventory indicates that the ending inventory is $686,000. The number of common shares outstanding is 90,000.
Instructions
Prepare a multi-step 2017 income statement for Holland Rose Corporation, showing expenses by function. Include calculation of EPS.

Transcribed Image Text:

185,000 535,000 4,275,000 117,000 2,786,000 Eetainment expense Cash Inventory (as at Jan. 1, 2017) Sales revenue Unearned revenue Purchases Sales discounts Purchase discounts Salaries and wages (sales) Salaries and wages (administrative) Purchase returns and allowances Sales returns and allowances Freight-in Accounts receivable Sales commission expense $ 69,000 33,000 24,000 54,000 93,000 48,000 36,000 17,000 32,000 8,000 240,000 70,000 176,000 900,000 Office expense Insurance expense Advertising expense Freight-out Depreciation of office equipment Depreciation of sales equipment 34,000 27,000 284,000 Telephone and Internet expense (sales) 346,000 Utilities expense (administrative 15,000 Miscellaneous expense 79,000 Rental revenue 72,000 os on disposal of equipment 142,500 Interest expense Common shares 83,000