Debit | Credit | ||||||
Merchandise inventory (ending) | $ | 30,500 | |||||
Other (noninventory) assets | 122,000 | ||||||
Total liabilities | $ | 35,228 | |||||
Common stock | 41,056 | ||||||
Retained earnings | 62,091 | ||||||
Dividends | 8,000 | ||||||
Sales | 208,620 | ||||||
Sales discounts | 3,192 | ||||||
Sales returns and allowances | 13,769 | ||||||
Cost of goods sold | 81,497 | ||||||
Sales salaries expense | 28,581 | ||||||
Rent expense—Selling space | 9,805 | ||||||
Store supplies expense | 2,503 | ||||||
Advertising expense | 17,733 | ||||||
Office salaries expense | 26,078 | ||||||
Rent expense—Office space | 2,503 | ||||||
Office supplies expense | 834 | ||||||
Totals | $ | 346,995 | $ | 346,995 | |||
Invoice cost of merchandise purchases | $ | 89,670 |
Purchases discounts received | 1,883 | |
Purchases returns and allowances | 4,304 | |
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 net sales, cost of goods sold, selling expenses, and 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.