Reference no: EM131802901

Question - Condensed Income Statement-Periodic Inventory Method

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

Cash $ 92,500, Travel and entertainment-sales $34,500,

Merchandise inventory 267,500, Accounting and legal services 16,500, Sales 2,137,500, Insurance expense-office 12,000,

Advances from customers 58,500, Advertising 27,000, Purchases 1,393,000, Transportation-out 46,500, Sales discounts 17,000, Depreciation of office equipment 24,000, Purchase discounts 13,500, Depreciation of sales equipment 18,000,

Sales salaries 142,000, Telephone-sales 8,500,

Office salaries 173,000, Utilities-office 16,000,

Purchase returns 7,500, Miscellaneous office expenses 4,000,

Sales returns 39,500, Rental revenue 120,000,

Transportation-in 36,000, Extraordinary loss (before tax) 35,000,

Accounts receivable 71,250, Interest expense 88,000,

Sales commissions 41,500, Common stock ($10 par) 450,000.

Vu's effective tax rate on all items is 34%. Aphysical inventory indicates that the ending inventory is $343,000.

Instructions: Prepare a condensed 2012 income statement for Vu Corporation.