Preparing closing entries LO5 Use the data for White Company in Problem 14-2B to comple...

Preparing closing entries LO5

Use the data for White Company in Problem 14-2B to complete the following requirements:

Required

Prepare closing entries as of March 31, 2010.

Check $55,175 Dr. to close Income

Summary

(Reference Problem 14-2B)

Computing merchandising amounts and formatting income statements LO1 LO2

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

On March 31, 2009, merchandise inventory was $37,500.

Required

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

2. Calculate 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) $134,600

(3) Gross profit, $191,175;

Net income, $55,175

(4) Total expenses, $251,600