Question

The accounting record for Brady Merchandiser, a retail store in Foxborough, MA, reported the following selected information: Account Amount Cost of Goods 36,000 Depreciation Expense 6,100 Gain on Asset Sales 8,800 Income Tax Expense 3,800 Interest Revenue 6,900 Investment Expense 4,600 Loss on Investment 7,500 Supplies Expense 5,500 Wages Expense 12,800 Determine Brady Merchandiser's Other Income and Expense. (Use ( ) or negative to denote Other Expense.)

Answer 1

Since the company is engaged in retail business, the following are part of regular operations and hence not considered as other income/ expenses:

Cost of goods sold,

Depreciation,

Supplies expenses, and

Wages expenses

The other expenses of Brady Merchandiser comprises of the following:

Income tax= (3,800)

Investment expenses= (4,600)

Loss on investment= (7,500)

Total other expenses= (15,900)

The other income of Brady Merchandiser comprises of the following:

Gain on asset sale= 8,800

Interest revenue= 6,900

Total other income= 15,700