Question

CHAPTER 5 Accounting for Merchandising Acties pruhem s ind PCK FIGURES: Income statements-perpetual LOS Operating expenses = $134,050: 2. Loss = $1650 trial balance information was taken from the end of the July 31, 2020, fiscal year for ne following adjusted to Brilliant Sales Debit Credit $ 6.500 12.220 2.400 1,150 29,400 $ 7,500 15.600 8,100 6,400 107.920 61,000 395,400 101 Cash Merchandise inventory 125 Supplies 128 Prepaid insurance 165 Store equipment. Accumulated depreciation, store equipment 167 Office equipment Accumulated depreciation, office equipment 201 Accounts payable 301 Ty Brilliant, capital 302 Ty Brilliant, withdrawals. 413 Sales 415 Sales discounts 505 Cost of goods sold 612 Depreciation expense, store equipment. 613 Depreciation expense, office equipment... 622 Sales salaries expense. 623 Office salaries expense.. 637 Insurance expense, store. 638 Insurance expense, office. 640 Rent expense, office space... 641 Rent expense, selling space. 651 Office supplies expense.... 652 Store supplies expense.. 655 Advertising expense.... Totals 1.200 261,800 1,500 1.250 39,000 32.000 4,100 2,800 13.100 21.000 2,600 1.800 14.900 $525.320 $525 320 ant Sales uses a perpetual inventory system. Required 1. Prepare a classified multiples 2 Prepare a multiple-step in dified multiple-step income statement for use by internal users (like Exhibit 5.13). a multiple-step income statement for external users (like Exhibit 5.14). e-step income statement (like Exhibit 5.15). repare a single-step income statement (hike huhem 5-98 Journe ving the information prov con 's for merchandising activities-periodic LO7 on provided in Part 1 of Problem 5-1B, journalize each of the transactions assuming a per

Answer 1

REQUIRED 1 :
Brilliant sales
Multiple -step   Income statement ( Internal users )
for year ended July 31,2020
Sales		$ 395,400
less: Sales discounts		($1200)
Net sales		$ 394,200
less : Cost of goods sold		( $261,800)
Gross profit from sales		$ 132,400
Operating expenses :
Selling expenses :
Sales salaries expenses	39,000
Advertising expenses	14,900
Rent expenses , selling space	21,000
Depreciation expense, store equipment	1,500
Store supplies expenses	1,800
Insurance expense-Store	4,100
Total selling expenses	$ 82,300
General and administrative expenses :
Office salaries expense	32,000
Rent expenses , office space	13,100
Depreciation expense, office equipment	1,250
Office supplies expense	2,600
Insurance expense-office	2,800
Total general and administrative expenses	$ 51,750
Total operating expenses		($ 134,050 )
Net income( loss)		($ 1,650)
REQUIRED 2 :
Brilliant sales
Multiple -step   Income statement ( External users )
for year ended July 31,2020
Net sales   ( 395,400-1200 )		$ 394,200
less: cost of goods sold		( $261,800)
Gross profit from sales		$ 132,400
operating expenses:
Salaries expenses (39,000 +32,000 )	71,000
Advertising expenses	14,900
Rent expenses (21,000 +13,100 )	34,100
Depreciation expense (1500 +1250 )	2,750
Supplies expenses ( 1,800 +2,600 )	4,400
Insurance expense (4,100 +2,800 )	6,900
Total operating expenses		($ 134,050 )
Net income( loss)		($ 1,650)

REQUIRED 3 :
Brilliant sales
Single -step   Income statement
for year ended July 31,2020
Revenue :
Net sales   ( 395,400-1200 )	$ 394,200
Total revenue	$ 394,200
Expenses:
Cost of goods sold	$261,800
Selling expenses ( see required 1 )	$ 82,300
General and administrative expense ( see required 1 )	$ 51,750
Total expenses	$ 395,850
Net income( loss) ( $ 394,200 -$ 395,850 )	($ 1,650)