Addison Corporation is currently going through a Chapter 11 bankruptcy reorganization. The company has the...
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Accounting
Addison Corporation is currently going through a Chapter 11 bankruptcy reorganization. The company has the following account balances for the current year.
| Debit | Credit | |||
| Advertising expense | $ | 24,000 | ||
| Cost of goods sold | 211,000 | |||
| Depreciation expense | 22,000 | |||
| Interest expense | 4,000 | |||
| Interest revenue | $ | 32,000 | ||
| Loss on closing of branch as part of reorganization | 109,000 | |||
| Professional fees | 71,000 | |||
| Rent expense | 16,000 | |||
| Revenues | 467,000 | |||
| Salaries expense | 70,000 | |||
Prepare an income statement for this organization. The effective tax rate is 20 percent (realization of any tax benefits is anticipated). (Negative amounts under "Reorganization items" should be indicated by a minus sign. All other amounts should be entered as positive.)
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