2. The Following Account balances are taken from the books of Winterfell Merchandising for the year ended on June 30, 2019. Create an income statement based on the following balances. Comment on the Statement after, state if it is favorable or unfavorable Sales 664,000 Purchases 445,000 Inventory, July 1, 2018 180,000 Sales Returns and Allowances 6,400 Sales Discount 13,280 Purchase Return and Allowances 14,400 Purchase Discount 8,900 Freight in 2,560 Inventory, June 30, 2019 Advertising Expense 118,400 5,540 Sales Salaries 48,000 Freight out 20,000 Utilities - Store 7,000 Store Supplies 27,600 Office Salaries 22,000 Utilities- office 4,800 Office Supplies 2,400 Depreciation - Delivery van 2,500 Dividends Income 2,500 Rent income 12,000 interest expense 17,000 Discount lost 3,200 Depreciation Office Furniture 12,000 Loss on sale of equipment 5,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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2. The Following Account balances are taken from the books of Winterfell Merchandising for the year ended on June
30, 2019. Create an income statement based on the following balances. Comment on the Statement atter, state if it is
favorable or unfavorable
Sales
664,000
Purchases
445,000
Inventory, July 1, 2018
180,000
Sales Returns and Allowances
6,400
Sales Discount
13,280
Purchase Return and Allowances
14,400
Purchase Discount
8,900
Freight in
2,560
Inventory, June 30, 2019
118,400
Advertising Expense
5,540
Sales Salaries
48,000
Freight out
20,000
Utilities - Store
7,000
Store Supplies
27,600
Office Salaries
22,000
Utilities- office
4,800
Office Supplies
2,400
Depreciation - Delivery van
2,500
Dividends Income
2,500
Rent income
12,000
interest expense
17,000
Discount lost
3,200
Depreciation Office Furniture
12,000
Loss on sale of equipment
5,000
Transcribed Image Text:2. The Following Account balances are taken from the books of Winterfell Merchandising for the year ended on June 30, 2019. Create an income statement based on the following balances. Comment on the Statement atter, state if it is favorable or unfavorable Sales 664,000 Purchases 445,000 Inventory, July 1, 2018 180,000 Sales Returns and Allowances 6,400 Sales Discount 13,280 Purchase Return and Allowances 14,400 Purchase Discount 8,900 Freight in 2,560 Inventory, June 30, 2019 118,400 Advertising Expense 5,540 Sales Salaries 48,000 Freight out 20,000 Utilities - Store 7,000 Store Supplies 27,600 Office Salaries 22,000 Utilities- office 4,800 Office Supplies 2,400 Depreciation - Delivery van 2,500 Dividends Income 2,500 Rent income 12,000 interest expense 17,000 Discount lost 3,200 Depreciation Office Furniture 12,000 Loss on sale of equipment 5,000
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