Homeworkkid24
Mar 4, 2009, 10:12 AM
BizKid Companys adjusted trial balance on August 31, 2005, 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 & 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
_________ _________
On August 31, 2004, merchandise inventory was $25,000. Supplemental records of merchandising activities for the year ended August 31, 2005, reveal the following costs:
Invoice cost of merchandise purchases $ 91,000
Purchase discounts received 1,900
Purchase returns and allowances . 4,400
Costs of transportation-in . 3,900
Required
1. Compute the companys net sales for the year.
2. Compute the companys 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.
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 & 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
_________ _________
On August 31, 2004, merchandise inventory was $25,000. Supplemental records of merchandising activities for the year ended August 31, 2005, reveal the following costs:
Invoice cost of merchandise purchases $ 91,000
Purchase discounts received 1,900
Purchase returns and allowances . 4,400
Costs of transportation-in . 3,900
Required
1. Compute the companys net sales for the year.
2. Compute the companys 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.