Krull Corporation Is Preparing Its Interim Financial Statements for the Third

question 47

Essay

Krull Corporation is preparing its interim financial statements for the third quarter of calendar 2014.
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 2014 is 32%.
Required:
Prepare Krull's interim income statement for the third quarter of calendar 2014.

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Definitions:

Par Preferred Stock

Preferred stock with a nominal value assigned in the corporate charter, which determines the issue price and face value for dividend calculations.

Par Common Stock

The nominal or face value assigned to a share of common stock, as stated in the corporate charter.

Market Value

The immediate market value at which one can buy or sell an asset or service.

Dividend

A portion of a company's earnings that is distributed to shareholders, typically in the form of cash or additional stock, as a reward for investing in the company.