Krull Corporation is preparing its interim financial statements for the third quarter of calendar 2011.
The following trial balance information is available for third quarter:
Additional information:
At the end of the year, Krull distributes annual employee bonuses and charitable donations that are estimated at $40,000, and $12,000, respectively.The cost of goods sold includes the liquidation of a $45,000 base layer in inventory that Krull will restore in the fourth quarter at a cost of $75,000.Effective corporate tax rate for 2011 is 32%.
Required:
Prepare Krull's interim income statement for the third quarter of calendar 2011.

Question

Krull Corporation is preparing its interim financial statements for the third quarter of calendar 2011.
The following trial balance information is available for third quarter:
  Additional information:
At the end of the year, Krull distributes annual employee bonuses and charitable donations that are estimated at $40,000, and $12,000, respectively.The cost of goods sold includes the liquidation of a $45,000 base layer in inventory that Krull will restore in the fourth quarter at a cost of $75,000.Effective corporate tax rate for 2011 is 32%.
Required:
Prepare Krull's interim income statement for the third quarter of calendar 2011.

Quizplus · Accepted Answer

The Answer of Krull Corporation is preparing its interim financial statements for the third quarter of calendar 2011.
The following trial balance information is available for third quarter:
  Additional information:
At the end of the year, Krull distributes annual employee bonuses and charitable donations that are estimated at $40,000, and $12,000, respectively.The cost of goods sold includes the liquidation of a $45,000 base layer in inventory that Krull will restore in the fourth quarter at a cost of $75,000.Effective corporate tax rate for 2011 is 32%.
Required:
Prepare Krull's interim income statement for the third quarter of calendar 2011.

Krull Corporation Is Preparing Its Interim Financial Statements for the Third