Preparing a schedule of cost of goods sold and multistep and single-step income statements: Periodic system (Appendix)
The following account titles and balances were taken from the adjusted trial balance of Scoggins Sales Co. at December 31, 2011. The company uses the periodic inventory method.
Account Title | Balance |
Advertising expense | $10,400 |
Interest expense | 5,000 |
Merchandise inventory, January 1 | 18,000 |
Merchandise inventory, December 31 | 20,100 |
Miscellaneous expense | 800 |
Purchases | 150,000 |
Purchase returns and allowances | 2,700 |
Rent expense | 18,000 |
Salaries expense | 53,000 |
Sales | 320,000 |
Sales returns and allowances | 8,000 |
Transportation-in | 6,200 |
Transportation-out | 10,800 |
Gain on sale-of land | 4,000 |
Utilities expense | 11,200 |
Required
a. Prepare a schedule to determine the amount of cost of goods sold.
b. Prepare a multistep income statement.
c. Prepare a single-step income statement.
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