This Website Has Been Moved to a New Link


Loading

P5-4A On August 31, 2010, merchandise inventory was $25,000. Supplementary records of merchandising

Price: $3.99


P5-4A BizKid Company’s adjusted trial balance on August 31, 2011, its fiscal year-end, follows.

Debit Credit
Merchandise inventory . . . . . . . . . . . . . $ 31,000
Other (noninventory) assets . . . . . . . . 120,400
Total liabilities . . . . . . . . . . . . . . . . . . . . $ 35,000
N. Kidman, Capital . . . . . . . . . . . . . . . . 101,650
N. Kidman, Withdrawals . . . . . . . . . . . . 8,000
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212,000
Sales discounts . . . . . . . . . . . . . . . . . . . 3,250
Sales returns and allowances . . . . . . . . 14,000
Cost of goods sold . . . . . . . . . . . . . . . . 82,600
Sales salaries expense . . . . . . . . . . . . . . 29,000
Rent expense — Selling space . . . . . . . . 10,000
Store supplies expense . . . . . . . . . . . . . 2,500
Advertising expense . . . . . . . . . . . . . . . 18,000
Office salaries expense . . . . . . . . . . . . . 26,500
Rent expense — Office space . . . . . . . . 2,600
Office supplies expense . . . . . . . . . . . . 800
Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . $348,650 $348,650
Invoice cost of merchandise purchases . . . . . . . . $91,000
Purchase discounts received . . . . . . . . . . . . . . . . . 1,900
Purchase returns and allowances . . . . . . . . . . . . . 4,400
Costs of transportation-in . . . . . . . . . . . . . . . . . . 3,900

On August 31, 2010, merchandise inventory was $25,000. Supplementary records of merchandising activities for the year ended August 31, 2011, reveal the following itemized costs.

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