The Income Statement Account Balances on December 31,2010,for Janice Corporation

question 6

Essay

The income statement account balances on December 31,2010,for Janice Corporation appear below.In addition,beginning merchandise inventory was $3,000 and ending merchandise inventory was $4,000.Prepare a 2010 income statement for the company.
$\begin{array}{|l|r|}\hline\text { Account Name }&\text { Balance }\\ \hline\text { Sales } & \$ 100,000 \\\text { Sales Returns and Allowances } & 1,500 \\\text { Purchases } & 50,000 \\\text { Purchases Returns and Allowances } & 3,000 \\\text { Freight-In } & 5,000 \\\text { Selling Expense } & 25,000 \\\text { General and Administrative Expenses } & 10,000 \\\text { Income Taxes Expense } & 1,800 \\\hline\end{array}$

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Definitions:

External Restraint Theory

The theory that external factors such as laws, social controls, and cultural norms act to prevent individuals from engaging in deviant or antisocial behavior.

Socialization

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Murderer

An individual who unlawfully kills another human being with premeditation or malice aforethought.

External Restraint

Controls imposed from outside an individual that influence behavior, such as laws, social norms, or cultural expectations.