The following information applies to the questions displayed below. Selected acc

Question

The following information applies to the questions displayed below. Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31, 2017, follow Credit $ 14,200 Debit a. Interest revenue b. Depreciation expense-Equipment. c. Loss on sale of equipment d. Accounts payable e. Other operating expenses f. Accumulated depreciation-Equipment g. Gain from settlement of lawsuit h. Accumulated depreciation-Buildings i. Loss from operating a discontinued segment (pretax) j. Gain on insurance recovery of tornado damage k. Net sales 1. Depreciation expense-Buildings m. Correction of overstatement of prior year's sales (pretax) n. Gain on sale of discontinued segment's assets (pretax) o. Loss from settlement of lawsuit p. Income taxes expense q. Cost of goods sold S 34,200 26,050 44,200 106,600 71,800 44,200 174,900 18,450 29,320 1,000,500 52,200 16,200 23,950 484,500 35,000 Problem 17-6 Part 4 4. What is the amount of net income for the year? Net income

Explanation / Answer

Income Statement $ $ Net Sales        1,000,500 Less: Cost of goods sold          (484,500) Gross income               516,000 Less: operating expenses; Other operating expenses            106,600 Depreciation expemses-Equipment              34,200 Depreciation expemses- Buildings              52,200 Total operating expenses             (193,000) Net income from operation (A )               323,000 Interest revenue ( B)                  14,200 Loss on sale of equipment ( C)               (26,050) Gain from settlement of lawsuit              44,200 Loss from settlement of lawsuit            (23,950) Net income /(loss) from settlement ( D )                  20,250 Gain on sale of discontinued segment's assets (pretax)              35,000 Loss from operating a discontinued segment (pretax)            (18,450) Net income /(loss) from discontinued segment ( E )                  16,550 Gain on insurance recovery of tornado damage (F )                  29,320 Correction of overstement of prior year's sales (pretax) ( G )               (16,200) Net income ( A + B + C + D + E + F + G )               361,070

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