The worksheet of Bridget's Office Supplies contains the following revenue, cost, and expense accounts. Prepare a classified income statement for this firm for the year ended December 31, 20X1. The merchandise inventory amounted to $59,675 on January 1, 20X1, and $52,625 on December 31, 20X1. The expense accounts numbered 611 through 617 represent selling expenses, and those numbered 631 through 646 represent general and administrative expenses.Accounts 401 Sales$ 248,200Credit451 Sales Returns and Allowances4,340Debit491 Miscellaneous Income390Credit501 Purchases103,500Debit502 Freight In1,965Debit503 Purchases Returns and Allowances3,590Credit504 Purchases Discounts1,790Credit611 Salaries Expense—Sales45,200Debit614 Store Supplies Expense2,300Debit617 Depreciation Expense—Store Equipment1,500Debit631 Rent Expense13,400Debit634 Utilities Expense2,990Debit637 Salaries Expense—Office21,000Debit640 Payroll Taxes Expense5,900Debit643 Depreciation Expense—Office Equipment560Debit646 Uncollectible Accounts Expense710Debit691 Interest Expense720Debit Operating revenueNet salesCost of goods soldTotal merchandise available for saleOperating expensesSelling expensesTotal selling expenseGeneral and administrative expensesTotal general and administrative expensesTotal operating expensesOther incomeOther expenseBRIDGET'S OFFICE SUPPLIESIncome Statement

Income Statement is a financial assertion that indicates the Income and Expenditures of the…

Answered: The worksheet of Bridget's Office…

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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The worksheet of Bridget's Office Supplies contains the following revenue, cost, and expense accounts. Prepare a classified income statement for this firm for the year ended December 31, 20X1. The merchandise inventory amounted to $59,675 on January 1, 20X1, and $52,625 on December 31, 20X1. The expense accounts numbered 611 through 617 represent selling expenses, and those numbered 631 through 646 represent general and administrative expenses.

Accounts
401 Sales	$ 248,200	Credit
451 Sales Returns and Allowances	4,340	Debit
491 Miscellaneous Income	390	Credit
501 Purchases	103,500	Debit
502 Freight In	1,965	Debit
503 Purchases Returns and Allowances	3,590	Credit
504 Purchases Discounts	1,790	Credit
611 Salaries Expense—Sales	45,200	Debit
614 Store Supplies Expense	2,300	Debit
617 Depreciation Expense—Store Equipment	1,500	Debit
631 Rent Expense	13,400	Debit
634 Utilities Expense	2,990	Debit
637 Salaries Expense—Office	21,000	Debit
640 Payroll Taxes Expense	5,900	Debit
643 Depreciation Expense—Office Equipment	560	Debit
646 Uncollectible Accounts Expense	710	Debit
691 Interest Expense	720	Debit

Operating revenue
Net sales
Cost of goods sold
Total merchandise available for sale
Operating expenses
Selling expenses
Total selling expense
General and administrative expenses
Total general and administrative expenses
Total operating expenses
Other income
Other expense
BRIDGET'S OFFICE SUPPLIES
Income Statement

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