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, 2013.
INSTRUCTIONS
1. Prepare a classified income statement for the year ended December 31, 2013. 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, 2013. No additional investments were made during the period.
3. Prepare a classified balance sheet as of December 31, 2013. The mortgage and the long-term notes extend for more than one year.
ACCOUNTS
| Debit | Credit |
Cash | $ 98,000 |
|
Petty Cash Fund | 500 |
|
Notes Receivable | 10,000 |
|
Accounts Receivable | 139,200 |
|
Allowance for Doubtful Accounts |
| $ 2,800 |
Interest Receivable | 100 |
|
Merchandise Inventory | 127,500 |
|
Warehouse Supplies | 2,300 |
|
Office Supplies | 600 |
|
Prepaid Insurance | 3,640 |
|
Land | 15,000 |
|
Building | 102,000 |
|
Accumulated Depreciation—Building |
| 16,200 |
Warehouse Equipment | 18,800 |
|
Accumulated Depreciation—Warehouse Equipment |
| 9,000 |
Office Equipment | 8,400 |
|
Accumulated Depreciation—Office Equipment |
| 3,400 |
Notes Payable—Short-Term |
| 14,000 |
Accounts Payable |
| 55,900 |
Interest Payable |
| 300 |
Notes Payable—Long-Term |
| 12,000 |
Mortgage Payable |
| 15,000 |
Colin O’Brien, Capital (Jan. 1) |
| 317,020 |
Colin O’Brien, Drawing | 69,650 |
|
Income Summary | 130,400 | 127,500 |
Sales |
| 1,090,300 |
Sales Returns and Allowances | 7,400 |
|
Interest Income |
| 480 |
Purchases | 453,000 |
|
Freight In | 8,800 |
|
Purchases Returns and Allowances |
| 12,650 |
Purchases Discounts |
| 8,240 |
Warehouse Wages Expense | 107,600 |
|
Warehouse Supplies Expense | 4,800 |
|
Depreciation Expense—Warehouse Equipment | 2,400 |
|
Salaries Expense—Sales | 150,700 |
|
Travel Expense | 23,000 |
|
Delivery Expense | 36,425 |
|
Salaries Expense—Office | 84,000 |
|
Office Supplies Expense | 1,120 |
|
Insurance Expense | 8,875 |
|
Utilities Expense | 7,000 |
|
Telephone Expense | 3,180 |
|
Payroll Taxes Expense | 30,600 |
|
Building Repairs Expense | 2,700 |
|
Property Taxes Expense | 15,400 |
|
Uncollectible Accounts Expense | 2,580 |
|
Depreciation Expense—Building | 4,600 |
|
Depreciation Expense—Office Equipment | 1,520 |
|
Interest Expense | 3,000 |
|
Totals | $1,684,790 | $1,684,790 |
Analyze: What percentage of total operating expenses is attributable to warehouse expenses?
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