ograms Plus is a retail firm that sells computer programs for home and business use. Programs Plus operates in a state with no sales tax. On December 31, 20X1, its general ledger contained the accounts and balances shown below: ACCOUNTS BALANCES Cash $ 18,280 Dr. Accounts Receivable 29,600 Dr. Allowance for Doubtful Accounts 110 Cr. Merchandise Inventory 65,375 Dr. Supplies 7,040 Dr. Prepaid Insurance 2,980 Dr. Equipment 37,000 Dr. Accumulated Depreciation—Equipment 11,600 Cr. Notes Payable 7,564 Cr. Accounts Payable 7,100 Cr. Social Security Tax Payable 710 Cr. Medicare Tax Payable 160 Cr. Yasser Tousson, Capital 96,620 Cr. Yasser Tousson, Drawing 50,000 Dr. Sales 520,980 Cr. Sales Returns and Allowances 10,800 Dr. Purchases 320,330 Dr. Freight In 3,900 Dr. Purchases Returns and Allowances 7,745 Cr. Purchases Discounts 15,330 Cr. Rent Expense 17,500 Dr. Telephone Expense 2,314 Dr. Salaries Expense 95,000 Dr. Payroll Taxes Expense 7,600 Dr. Interest Expense 200 Dr. The data needed for the adjustments on December 31 are as follows: a.-b. Ending merchandise inventory, $68,150. Uncollectible accounts, 0.5 percent of net credit sales of $248,000. Supplies on hand December 31, $1,170. Expired insurance, $1,490. Depreciation Expense—Equipment, $6,800. Accrued interest expense on notes payable, $625. Accrued salaries, $2,700. Social Security Tax Payable (6.2 percent) and Medicare Tax Payable (1.45 percent) of accrued salaries. The following accounts had zero balances: Salaries Payable Interest Payable Income Summary Supplies Expense Insurance Expense Depreciation Expense—Equipment Uncollectible Accounts Expense Please give me the income statement,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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ograms Plus is a retail firm that sells computer programs for home and business use. Programs Plus operates in a state with no sales tax. On December 31, 20X1, its general ledger contained the accounts and balances shown below:

ACCOUNTS	BALANCES
Cash	$	18,280	Dr.
Accounts Receivable		29,600	Dr.
Allowance for Doubtful Accounts		110	Cr.
Merchandise Inventory		65,375	Dr.
Supplies		7,040	Dr.
Prepaid Insurance		2,980	Dr.
Equipment		37,000	Dr.
Accumulated Depreciation—Equipment		11,600	Cr.
Notes Payable		7,564	Cr.
Accounts Payable		7,100	Cr.
Social Security Tax Payable		710	Cr.
Medicare Tax Payable		160	Cr.
Yasser Tousson, Capital		96,620	Cr.
Yasser Tousson, Drawing		50,000	Dr.
Sales		520,980	Cr.
Sales Returns and Allowances		10,800	Dr.
Purchases		320,330	Dr.
Freight In		3,900	Dr.
Purchases Returns and Allowances		7,745	Cr.
Purchases Discounts		15,330	Cr.
Rent Expense		17,500	Dr.
Telephone Expense		2,314	Dr.
Salaries Expense		95,000	Dr.
Payroll Taxes Expense		7,600	Dr.
Interest Expense		200	Dr.

The data needed for the adjustments on December 31 are as follows:

a.-b. Ending merchandise inventory, $68,150.

Uncollectible accounts, 0.5 percent of net credit sales of $248,000.
Supplies on hand December 31, $1,170.
Expired insurance, $1,490.
Depreciation Expense—Equipment, $6,800.
Accrued interest expense on notes payable, $625.
Accrued salaries, $2,700.
Social Security Tax Payable (6.2 percent) and Medicare Tax Payable (1.45 percent) of accrued salaries.

The following accounts had zero balances:

Salaries Payable
Interest Payable
Income Summary
Supplies Expense
Insurance Expense
Depreciation Expense—Equipment
Uncollectible Accounts Expense

Please give me the income statement,

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