ACCT 2001 Chapter : Start Of Chapter 2 Warm Up Exercise 1
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Addison Corporation is currently going through a Chapter 11bankruptcy. The company has the following account balances for thecurrent year.
Debit | Credit | |||
Advertising expense | $ | 25,000 | ||
Costof goods sold | 212,000 | |||
Depreciation expense | 23,000 | |||
Interest expense | 5,000 | |||
Interest revenue | $ | 33,000 | ||
Losson closing of branch | 110,000 | |||
Professional fees | 72,000 | |||
Rentexpense | 17,000 | |||
Revenues | 474,000 | |||
Salaries expense | 71,000 | |||
Prepare an income statement for this organization. The effectivetax rate is 25 percent (realization of any tax benefits isanticipated). (Negative amounts under "Reorganizationitems" should be indicated by a minus sign.)
Revenues | 474,000 | |
Costs & Expenses: | ||
COGS | 212,000 | |
Advertising Exp | 25,000 | |
Depreciation Exp | 23,000 | |
Interest Exp | 5,000 | |
Rent Exp | 17,000 | |
Salaries | 71,000 | |
353,000 | ||
Earnings before reorganization items nd tax effects | 121,000 | |
Reorganization items: | ||
Interest revenue | 33,000 | |
Professional Fees | (72,000) | |
Loss on closing of branch | (110,000) | |
(149,000) | ||
Loss before income tax benefit | (28,000) | |
Income Tax benefit | NEED ANSWER | |
Net Loss |