Question

The worksheet of Bridget's Office Supplies contains the following revenue, cost, and expense accounts. The merchandise inventory amounted to $58.475 on January 1, 2019, and $51,425 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 $245,000 Cr 4,220 Dr 270 Cr 451 Sales Returns and Allowances 491 Miscellaneous Income s01 Purchases 502 Freight In se3 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 182,300 Dr 1,845 Dr 3,470 Cr 1,670 Cr 44,000 Dr. 2,180 Dr. 1,380 Dr 12,200 Dr. 2,870 Dr 19,800 Dr. 4,700 Dr 440 Dr. 590 Dr 480 Dr. The worksheet of Bridget's Office Supplies contains the following owner's equity accounts. No additional investments were made during the perlod. Accounts 301 Bridget Swanson, Capital 382 Bridget Swanson, Drawing $62,460 Cr. 40,850 Dr. Net income for the year $46,355

Answer 1

39 40 245,000.00 4,220.00 240,780.00 58,475.00 102,300.00 1,845.00 104,145.00 Bridget's Office Supplies Income Statement For the Year Ended December 31, 2019 Operating revenue Sales Less Sales Returns and Allowances Net sales Cost of goods sold Merchandise inventory, January 1, 2019 Purchases Freight In Delivered Cost of Purchases Purchase Returns & Allowanes 3,470.00 Purhase Discounts 1,670.00 Net Delivered Cost of Purchases Total merchandise available for sale less Merchandise Inventory, December 31, 2019 Cost of goods sold Gross Profit on sales Operating Expenses Selling expenses Salaries Expense - Sales Store Supplies expense Depreciation Expense-Store Equipment Total Selling Expense 5,140.00 99,005.00 157,480.00 51,425.00 106,055.00 134,725.00 44,000.00 2,180.00 1,380.00 47,560.00

12,200.00 2,870.00 19,800.00 4,700.00 440.00 590.00 40,600.00 General and Admistrative Expenses Rent expense Utilities expenses Salaries Expense - Office Payroll Taxes expense Depreciation Expense-Office Equipment Uncllectible Accounts Expense Total General and Admistrative Expenses Total operating expenses Income from operations Other income Miscellaneous Income Other expenses Interest Expense Net nonoperating income Net Income for the Year 88,160.00 46,565.00 270.00 (480.00) (210.00) 46,355.00