Question

Problem 4-5 (Part Level Submission) The trial balance follows for Culver Corporation at December 31, 20 CULVER CORPORATION Trial Balance Year Ended December 31, 2017 Debit Credit Purchase discounts Cash Accounts receivable Rent revenue Retained earnings Salaries and wages payable Sales revenue Notes receivable Accounts payable Accumulated depreciation-equipment Sales discounts Sales returns and allowances Notes payable Selling expenses Administrative expenses Common shares Income tax expense Dividends Allowance for doubtful accounts Supplies $15,500 $294,035 162,750 27,900 248,000 27,900 1,705,000 170,500 75,950 43,400 22,475 27,125 108,500 359,600 153,450 465,000 83,545 69,750 7,750 21,700

Answer 1

Solution:

Culver Corporation
Income Statement
For year ended December 31, 2017
Particulars		Amount
Revenues:
Sales revenue	$1,705,000.00
Sales discounts	$22,475.00
Sales returns and allowances	$27,125.00
Net Sales		$1,655,400.00
Gain on sale of land		$46,500.00
Rent revenue		$27,900.00
Total Revenues		$1,729,800.00
Expenses:
Cost of goods sold:
Beginning inventory	$137,950.00
Purchases	$945,500.00
Freight In	$31,000.00
Purchase discount	$15,500.00
Ending inventory	$99,200.00
Cost of goods sold		$999,750.00
Selling Expenses		$359,600.00
Administrative expenses		$153,450.00
Income tax expense		$83,545.00
Total Expenses		$1,596,345.00
Net Income		$133,455.00