- Gloria J Company provided the following information for2019.
Purchases | 5,250,000.00 |
Purchases returns and allowances | 150,000.00 |
Rental income | 250,000.00 |
Selling expenses: | |
Freight out | 175,000.00 |
Salesmen’s commission | 650,000.00 |
Depreciation – store equipment | 125,000.00 |
Merchandise inventory, January 1 | 1,000,000.00 |
Merchandise inventory, December 31 | 1,500,000.00 |
Sales | 7,850,000.00 |
Sales returns and allowances | 140,000.00 |
Sales discounts | 10,000.00 |
Administrative expenses | |
Officers’ salaries | 500,000.00 |
Depreciation – office equipment | 300,000.00 |
Freight in | 500,000.00 |
Income tax | 250,000.00 |
Loss on sale of equipment | 50,000.00 |
Purchase discounts | 100,000.00 |
Dividend revenue | 150,000.00 |
Loss on sale of investment | 50,000.00 |
Required: Prepare an incomestatement using “functional method” for the year with supportingnotes
*Hint: don't miss out incometax
