
BizKid Company’s adjusted trial balance on August 31, 2011, its fiscal year-end, follows.
Debit | Credit | ||||||
Merchandise inventory | $ | 33,000 | |||||
Other (noninventory) assets | 132,000 | ||||||
Total liabilities | $ | 38,115 | |||||
N. Kidman, Capital | 110,629 | ||||||
N. Kidman, Withdrawals | 8,000 | ||||||
Sales | 225,720 | ||||||
Sales discounts | 3,454 | ||||||
Sales returns and allowances | 14,898 | ||||||
Cost of goods sold | 87,857 | ||||||
Sales salaries expense | 30,924 | ||||||
Rent expense—Selling space | 10,609 | ||||||
Store supplies expense | 2,709 | ||||||
Advertising expense | 19,186 | ||||||
Office salaries expense | 28,215 | ||||||
Rent expense—Office space | 2,709 | ||||||
Office supplies expense | 903 | ||||||
Totals | $ | 374,464 | $ | 374,464 | |||
On August 31, 2010, merchandise inventory was $26,631. Supplementary records of merchandising activities for the year ended August 31, 2011, reveal the following itemized costs.
Invoice cost of merchandise purchases | $ | 97,020 |
Purchase discounts received | 2,037 | |
Purchase returns and allowances | 4,657 | |
Costs of transportation-in | 3,900 | |
Required
1. Compute the company’s net sales for the year.
2. Compute the company’s total cost of merchandise purchased for the year.
3. Prepare a multiple-step income statement that includes separate categories for selling expenses and for
general and administrative expenses.
4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses
No comments:
Post a Comment