question archive During 2020, GlenTel Inc
During 2020, GlenTel Inc
Subject:AccountingPrice:2.87 Bought7
During 2020, GlenTel Inc. sold its interest in a chain of wholesale outlets. This sale took the company out of the wholesaling business completely. The company still operates its retail outlets.
Following are eight profit-related items:
Debit
Credit
1.
Depreciation expense
$
157,500
2.
Gain on sale of wholesale operation (net of $135,000 income taxes)
$
405,000
3.
Loss from operating wholesale operation (net of $111,000 tax benefit)
333,000
4.
Salaries expense
324,000
5.
Sales
1,620,000
6.
Gain on expropriation of company property
264,000
7.
Cost of goods sold
828,000
8.
Income taxes expense
190,200
Present a multiple-step income statement for 2020.
