E4-11B (Condensed Income Statement—Periodic Inventory Method) Presented below are selected ledger accounts of Vu Corporation at December 31, 2014.

E4-11B (Condensed Income Statement—Periodic Inventory Method) Presented below are selected ledger accounts of Vu Corporation at December 31, 2014.

Cash                                                 $ 92,500      Travel and entertainment—sales                      $ 34,500

Merchandise inventory                   267,500       Accounting and legal services                              16,500

Sales                                              2,137,500       Insurance expense—office                                   12,000

Advances from customers               58,500      Advertising                                                                27,000

Purchases                                     1,393,000      Transportation-out                                                   46,500

Sales discounts                                 17,000       Depreciation of office equipment                        24,000

Purchase discounts                          13,500       Depreciation of sales equipment                       18,000

Sales salaries                                  142,000      Telephone—sales                                                    8,500

Office salaries                                  173,000       Utilities—office                                                       16,000

Purchase returns                                 7,500       Miscellaneous office expenses                             4,000

Sales returns                                      39,500      Rental revenue                                                     120,000

Transportation-in                               36,000      Extraordinary loss (before tax)                             35,000

Accounts receivable                          71,250       Interest expense                                                    88,000

Sales commissions                         41,500       Common stock ($10 par)                                   450,000

Vu’s effective tax rate on all items is 34%. A physical inventory indicates that the ending inventory is $343,000.

Instructions

Prepare a condensed 2014 income statement for Vu Corporation.