This Website Has Been Moved to a New Link


Loading

BizKid Company’s adjusted trial balance on August 31, 2011, its fiscal year-end, follows.

Price: $3.99


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