Logan Corp.\'s trial balance of income statement accounts for the year ended Dec

Question

Logan Corp.'s trial balance of income statement accounts for the year ended December 31, 2011 included the following:

Sales            $140,000           
Cost of sales      $ 50,000
Administrative expenses      25,000
Loss on sale of equipment      9,000
Commissions to salespersons      8,000
Interest revenue      5,000
Freight-out      3,000
Loss on disposition of wholesale division      12,000

Bad debt expense      3,000     

     
Other information:

Logan's income tax rate is 30%. Finished goods inventory:

January 1, 2011      $80,000

December 31, 2011      70,000

On Logan's income statement for 2011, income from continuing operations is

$35,000

$64,000

$47,000

$24,500

$35,000

$64,000

$47,000

$24,500

Explanation / Answer

Logan's Income from Continuing Operations for 2011 (Amounts in $) Sales 140000 Cost of Sales 50000 Gross Margin 90000 Interest Revenue 5000 95000 Freight Out 3000 Administrative Expenses 25000 Loss on Sale of Equipment 9000 Commission to Salespersons 8000 Bad Debt expense 3000 48000 Income from Continuing Operations 47000

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