Concord Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense-selling space, store supplies expense, advertising expense. It categorizes the remaining expenses as general and administrative. Debit Credit Merchandise inventory (ending) Other (noninventory) assets 44,000 176,000 Total liabilities 50,820 K. Concord, Capital K. Concord, Withdrawals 143,537 8,000 Sales 300,960 Sales discounts 4,605 Sales returns and allowances Cost of goods sold Sales salaries expense Rent expenseSelling space 19,863 115,842 41,232 14,145 Store supplies expense 3,612 Advertising expense 25,582 Office salaries expense 37,620 Rent expense Ofice space Office supplies expense 3,612 1,204| Totals 495,317 495,317 Beginning merchandise inventory was $35,508. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases 129,360 Purchases discounts received 2,717 Purchases returns and allowances 6,209 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.
Concord Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense-selling space, store supplies expense, advertising expense. It categorizes the remaining expenses as general and administrative. Debit Credit Merchandise inventory (ending) Other (noninventory) assets 44,000 176,000 Total liabilities 50,820 K. Concord, Capital K. Concord, Withdrawals 143,537 8,000 Sales 300,960 Sales discounts 4,605 Sales returns and allowances Cost of goods sold Sales salaries expense Rent expenseSelling space 19,863 115,842 41,232 14,145 Store supplies expense 3,612 Advertising expense 25,582 Office salaries expense 37,620 Rent expense Ofice space Office supplies expense 3,612 1,204| Totals 495,317 495,317 Beginning merchandise inventory was $35,508. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases 129,360 Purchases discounts received 2,717 Purchases returns and allowances 6,209 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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AC107 Unit 5 Merchandise Templ...
Concord Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following
accounts as selling expenses: sales salaries expense, rent expense-selling space, store supplies expense,
advertising expense. It categorizes the remaining expenses as general and administrative.
Debit
Credit
Merchandise inventory (ending)
44.000
Other (noninventory) assets
Total liabilities
K. Concord, Capital
K. Concord, Withdrawals
176.000
50,820
143,537
8.000
Sales
300,960
Sales discounts
4,605
Sales returns and allowances
19,863
Cost of goods sold
Sales salaries expense
Rent expense-Selling space
Store supplies expense
Advertising expense
Office salaries expense
Rent expense-Office space
Office supplies expense
115,842
41,232
14,145
3,612
25,582
37,620
3,612
1,204
Totals
495,317
495,317
Beginning merchandise inventory was $35,508. Supplementary records of merchandising
activities for the year ended August 31 reveal the following itemized costs.
Invoice cost of merchandise purchases
129,360
Purchases discounts received
2,717
Purchases retums and allowances
6,209
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.
Hint - the tables below are formatted for the exact numbers of lines you will need to complete each section,
Compute Net Sales
Sales
Net Sales
Cost of Merchandise Purchased
Total cost of merchandise purchased
Calculate Selling Expense
Total cost of merchandise purchased
000
D0
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因
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