Current Attempt in Progress

The following are selected ledger accounts of Martinez Rose Corporation at December $31,2023$:

Cash

$$185,000$

Entertainment expense

$$68,000$

Inventory $($as at Jan. $1,2023)$

$536,000$

Office expense

$32,000$

Sales revenue

$4,320,000$

Insurance expense

$24,000$

Unearned revenue

$125,000$

Advertising expense

$51,000$

Purchases

$2,737,000$

Freight out

$90,000$

Sales discounts

$31,000$

Depreciation expense of office equipment

$45,000$

Purchase discounts

$24,000$

Depreciation expense of sales equipment

$34,000$

Salaries and wages expense $($sales$)$

$280,000$

Telephone and internet expense $($sales$)$

$16,000$

Salaries and wages expense $($administrative$)$

$351,000$

Utilities expense $($administrative$)$

$30,000$

Purchase returns and allowances

$17,000$

Miscellaneous expense

$8,000$

Sales returns and allowances

$83,000$

Rental revenue

$230,000$

Freight in

$76,000$

Loss on disposal of equipment

$57,000$

Accounts receivable

$144,000$

Interest expense

$177,000$

Sales commission expense

$83,000$

Common shares

$1,000,000$

Martinez Rose$$s effective tax rate on all items is $20\%.$ A physical inventory shows that the ending inventory is $$688,000.$ The number of common shares outstanding is $100,000.$

Prepare a condensed multiple$-$step $2023$ income statement for Martinez Rose, showing expenses by function. Martinez Rose follows ASPE but decides to disclose EPS on its income statement

Answer rating: 100% (QA)

Here is the multiplestep condensed income statement for Martinez Rose Corporation for the year ended ... View the full answer