Debit Credit $ 56,500 Merchandise inventory (ending) Other (noninventory) assets. Total liabilities.. C. Barkley, Capital. .... C. Barkley, Withdrawals Sales .... Sales discounts... 202,600 $ 42,500 164,425 3,000 332,650 5,875 Sales returns and allowances 20,000 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. Totals... 115,600 44,500 16,000 3,850 26,000 40,750 3,800 1,100 $539,575 $539,575
Barkley Company’s adjusted
accounts as selling expenses: Sales Salaries Expense, Rent Expense—Selling Space, Store Supplies
Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative. Beginning merchandise inventory was $37,500. Supplementary records of merchandising activities for the
year ended March 31 reveal the following itemized costs.
Invoice cost of merchandise purchases . $138,500 Purchases returns and allowances $6,700
Purchases discounts received . . . . . . . . . . . . . . . . . 2,950 Costs of transportation-in . 5,750
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.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
