Question

The worksheet of Bridget's Office Supplies contains the following revenue, cost, and expense accounts. The merchandise inventory amounted to $58,275 on January 1, 2019, and $51,225 on December 31, 2019. The expense accounts numbered 611 through 617 represent selling expenses, and those numbered 631 through 646 represent general and administrative expenses. Accounts 401 Sales 451 Sales Returns and Allowances 491 Miscellaneous Income 501 Purchases S02 Freight In 583 Purchases Returns and Allowances 584 Purchases Discounts 611 Salaries Expense-Sales 614 Store Supplies Expense 617 Depreciation Expense Store Equipment 631 Rent Expense 634 Utilities Expense 637 Salaries Expense-Office 640 Payroll Taxes Expense 643 Depreciation Expense-Office Equipment 646 Uncollectible Accounts Expense 691 Interest Expense $244,600 Cr. 4,200 Dr. 250 Cr. 102,100 Dr. 1,825 Dr. 3,450 Cr. 1,650 Cr. 43,882 Dr. 2,160 Or. 1,360 Dr. 12,000 Dr. 2,850 Dr. 19,600 Dr. 4,500 Dr. 420 Dr. 570 Dr. 440 Dr. Prepare a classified income statement for this firm for the year ended December 31, 2019 BRIDGETS OFFICE SUPPLIES Income Statement Operating revenue Net sales Cost of goods sold

Answer 1

BRIDGETS OFFICE SUPPLIES

Operating Revenue:-
401 Sales		244600.00
451 Less:- Sales Return & Allowances		4200.00
Net Sales			240400
Cost of Goods Sold:-
Opening Stock		58275.00
Add:- Purchases (Net)		98825.00
		157100.00
Less:- Closing Stock		51225.00
Total Merchandise available for Sale			105875
Calculation of Purchases (Net)
501 Purchases		102100.00
502 Add:- freight Inward		1825.00
503 Less:- Purchase Returns and allowances		3450.00
504 Less:- Purchase Discount (Assumed Trade Discount)		1650.00
Net Purchases			98825.00
Operating Expenses:-
Selling Expenses:-
611 Salaries Expenses- Sales		43800.00
614 Store Supplies expenses		2160.00
617 Depreciation expenses- Store Equipment		1360.00
Total Selling Expenses (A)			47320.00
General & Administrative Expenses:-
631 Rent Expenses		12000.00
634 Utilities Expenses		2850.00
637 Salaries expenses - Office		19600.00
640 Payroll Taxes Expenses		4500.00
643 Depreciation Expense- Office Equipment		420.00
646 Uncollectible Account Expense		570.00
Total General & Administrative Expenses (B)			39940.00
TOTAL OPERATING EXPENSES (A+B)			87260.00
Other Income:-
491 Misc Income			250.00
Other Expense:-
691 Interest Expense			440.00