Woodss effective tax rate on all items is 34 a physical

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Reference no: EM13597361

Presented below are selected ledger accounts of Woods Corporation at December 31, 2012.

  • Cash $185,000 Sales salaries $291,500
  • Merchandise inventory 539,500 Office salaries 355,800
  • Sales 4,298,200 Purchase returns 15,000
  • Advances from customers 117,000 Sales returns 79,000
  • Purchases 2,786,000 Transportation-in 72,000
  • Sales discounts 34,000 Accounts receivable 142,500
  • Purchase discounts 27,000 Sales commissions 83,000
  • Travel and entertainment 69,000 Telephone-sales 17,000
  • Accounting and legal services 33,000 Utilities-office 32,000
  • Insurance expense-office 24,000 Miscellaneous office expenses 8,000
  • Advertising 54,000 Rental revenue 240,000
  • Transportation-out 93,000 Extraordinary loss (before tax) 70,000
  • Depreciation of office equipment 48,000 Interest expense 176,000
  • Depreciation of sales equipment 36,000 Common stock ($10 par) 900,000
  1. Woods's effective tax rate on all items is 34%. A physical inventory indicates that the ending inventory is $689,300.
  2. Prepare a condensed 2012 income statement for Woods Corporation

Reference no: EM13597361

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