From the adjusted trial balance for Brookstone Art Supplies given below, prepare a multiple-step income statement in good form.Brookstone Art SuppliesAdjusted Trial BalanceDecember 31?DebitCreditCash$9,400?Accounts receivable25,000?Merchandise inventory36,000?Office supplies900?Store equipment75,000?Accumulated depreciation-store equipment?$22,000Office equipment60,000?Accumulated depreciation-office equipment?15,000Accounts payable?42,000Notes payable?10,000A. Brookstone, Capital?110,700A. Brookstone, Withdrawals48,000?Sales?325,000Sales discounts6,000?Sales returns and allowances16,500?Cost of goods sold195,000?Selling expenses32,500?General and administrative expenses19,800?Interest expense600?Totals $524,700$524,700???
What will be an ideal response?
| Brookstone Art Supplies Income Statement For the year ended December 31 | ||
| Sales | ? | $325,000 |
| Less: Sales discounts | $ 6,000 | ? |
| Sales returns and allowance | 16,500 | 22,500 |
| Net sales | ? | $302,500 |
| Cost of goods sold | ? | 195,000 |
| Gross profit | ? | 107,500 |
| Operating expenses | ? | ? |
| Selling expenses | 32,500 | ? |
| General and administrative expenses | 19,800 | ? |
| Total operating expenses | ? | 52,300 |
| Income from operations | ? | 55,200 |
| Other expenses | ? | ? |
| Interest expense | ? | 600 |
| Net income | ? | $ 54,600 |
| ? | ? | ? |
You might also like to view...
Which SEC form may be the best place to start learning about the economics of an industry and the particular strategy a firm has selected for competing in the industry?
a. Form 8-K b. Form 10-K c. Form MD&A d. Form FSAP
Use the following information to answer the following questions. Izabelle and Marta are forming a partnership. Izabelle will invest a piece of equipment with a book value of $5,000 and a fair market value of $15,000. Marta will invest a building with a book value of $30,000 and a fair market value of $35,000. At what amount will Izabelle's capital account be recorded?
A) $15,000 B) $5,000 C) $20,000 D) $50,000
In a 1976 discussion memorandum, the FASB defined the pooling-of-interest method of accounting for business combinations as a method which:
a. results in the assets and liabilities of the subsidiary being valued at market value at the time of acquisition, and the parent’s assets and liabilities being valued at book value. b. results in the assets and liabilities of the parent being valued at market value at the time of acquisition, and the subsidiary’s assets and liabilities being valued at book value. c. results in all entities’ assets and liabilities being revalued to market values at the time the combination originates. d. uses the book values of the combining companies.
Triplett’s finding that the presence of other people increases performance is called:
a. Scientific management b. Social facilitation c. Binging d. Social identification e. Social representation