Question

Good to Go Auto Products distributes automobile parts to service stations and repair shops. The adjusted trial balance data that follows is from the firm’s worksheet for the year ended December 31, 2019.

Accounts	Debit			Credit
Cash	$	98,300
Petty Cash Fund		500
Notes Receivable, due 2020		11,500
Accounts Receivable		139,500
Allowance for Doubtful Accounts				$	3,100
Interest Receivable		115
Merchandise Inventory		127,800
Warehouse Supplies		2,600
Office Supplies		630
Prepaid Insurance		3,940
Land		15,300
Building		103,500
Accumulated Depreciation—Building					16,350
Warehouse Equipment		19,100
Accumulated Depreciation—Warehouse Equipment					9,150
Office Equipment		8,700
Accumulated Depreciation—Office Equipment					3,550
Notes Payable, due 2020					14,300
Accounts Payable					56,200
Interest Payable					330
Loans Payable—Long-Term					13,500
Mortgage Payable					16,500
Colin O’Brien, Capital (Jan. 1)					319,945
Colin O’Brien, Drawing		69,950
Income Summary		130,700			127,800
Sales					1,096,300
Sales Returns and Allowances		7,700
Interest Income					510
Purchases		456,000
Freight In		9,100
Purchases Returns and Allowances					12,950
Purchases Discounts					8,540
Warehouse Wages Expense		107,900
Warehouse Supplies Expense		5,100
Depreciation Expense—Warehouse Equipment		2,700
Salaries Expense—Sales		151,000
Travel Expense		23,300
Delivery Expense		36,725
Salaries Expense—Office		84,300
Office Supplies Expense		1,150
Insurance Expense		9,175
Utilities Expense		7,300
Telephone Expense		3,210
Payroll Taxes Expense		30,900
Building Repairs Expense		3,000
Property Taxes Expense		15,700
Uncollectible Accounts Expense		2,880
Depreciation Expense—Building		4,900
Depreciation Expense—Office Equipment		1,550
Interest Expense		3,300
Totals	$	1,699,025		$	1,699,025

Required:

1. Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.
2. Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the period.
3. Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than one year.

Analyze:
What percentage of total operating expenses is attributable to warehouse expenses?

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Answer 1