Use the data for Cacuango Company in Problem 14-2A to complete the following requirement...

Use the data for Cacuango Company in Problem 14-2A to complete the following requirements

Required

Prepare closing entries as of August 31, 2010.

(Reference Problem 14-2A)

Computing merchandising amounts and formatting income statements LO1 LO2

Cacuango Company’s adjusted trial balance on August 31, 2010, its fiscal year-end, follows.

On August 31, 2009, merchandise inventory was $25,400.

Required

1. Compute the company’s net sales for the year.

2. Compute the company’s total cost of net purchases for the year.

3. Prepare a multiple-step income statement that includes separate categories for selling expenses and for general and administrative expenses.

4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.

Check (2) $90,100

(3) Gross profit, $136,850;

Net income, $49,850

(4) Total expenses, $161,500