Question

The ledger of Jaime Corporation at December 31, 2014, contains the following summary data.
Net sales ............. $1,700,000
Selling expenses .......... 120,000
Other revenues and gains ....... 20,000
Cost of goods sold ......... $1,100,000
Administrative expenses ........ 150,000
Other expenses and losses ...... 28,000

Your analysis reveals the following additional information that is not included in the above data.
1. The entire Puzzles Division was discontinued on August 31. The income from operations for this division before income taxes was $20,000. The Puzzles Division was sold at a loss of $90,000 before income taxes.
2. On May 15, company property was expropriated for an interstate highway. The settlement resulted in an extraordinary gain of $120,000 before income taxes.
3. The income tax rate on all items is 30%.

Instructions
Prepare an income statement for the year ended December 31, 2014.



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  • CreatedJanuary 30, 2014
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