the information below pertains to the operations of montreal retail corporation for 4375839

The information below pertains to the operations of Montreal Retail Corporation for the year ended 31 December 20X6:Cost of merchandise sold ……………. $ 102,000 Inventory warehousing cost……………. 20,000 Accounts payable ………………. 120,000 Sales revenue ………………… 525,000 Accumulated depreciation ……………. 140,000 Sales returns ………………… 5,000 Unearned revenue ………………. 2,000 Depreciation expense ……………… 50,000 Rent revenue …………………. 4,000 Employee wages, salaries, and benefits………. 100,000 Interest expense ………………. 6,000 Investment revenue ……………… 3,000 Loss on disposal of geographic segment ………. 30,000 Earnings from discontinued geographic segment…… 20,000 Distribution expenses ……………… 106,000 General and administrative expenses………… 46,000 Loss on sale of noncurrent assets…………. 13,000 Income tax expense ? Fire loss ………….. 20,000Additional information: • Functional costs do not include depreciation or employee costs. • Depreciation expense pertains 50% to warehousing cost, 30% to administrative costs, and 20% to distribution expense. • Employee wages, salaries, and benefits pertain 20% to warehousing and merchandising, 50% to administrative costs, and 30% to distribution expense. • The company’s income tax rate is 20%. Assume that the tax rate pertains to all elements of revenue, expense, gain, and loss. Required: 1. Prepare an income statement on a functional basis, in a single- step format. 2. Prepare an income statement on the basis of nature of expense, using a multiple- step format.View Solution:
The information below pertains to the operations of Montreal Retail

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