Problem

Lite Speed Electronics is a retail store that sells computers and computer supplies. The a...

Lite Speed Electronics is a retail store that sells computers and computer supplies. The adjusted trial balance data given below 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 loans extend for more than one year.

ACCOUNTS

 

Debit

Credit

Cash

$ 10,200

 

Petty Cash Fund

100

 

Notes Receivable

3,200

 

Accounts Receivable

21,250

 

Allowance for Doubtful Accounts

 

$ 2,250

Merchandise Inventory

35,400

 

Warehouse Supplies

775

 

Office Supplies

780

 

Prepaid Insurance

2,200

 

Land

7,642

 

Building

48,500

 

Accum. Depr.—Building

 

13,000

Warehouse Equipment

8,000

 

Accumulated Depreciation—Warehouse Equipment

 

2,300

Delivery Equipment

16,400

 

Accumulated Depreciation—Delivery Equipment

 

3,600

Office Equipment

6,000

 

Accumulated Depreciation—Office Equipment

 

2,500

Notes Payable

 

5,000

Accounts Payable

 

13,140

Interest Payable

 

240

Mortgage Payable

 

15,950

Loans Payable

 

4,000

Toshi Takahashi, Capital (Jan. 1)

 

60,940

Toshi Takahashi, Drawing

24,000

 

Income Summary

33,125

35,400

Sales

 

429,800

Sales Returns and Allowances

3,150

 

Interest Income

 

462

Purchases

179,600

 

Freight In

2,200

 

Purchases Returns and Allowances

 

2,520

Purchases Discounts

 

2,350

Warehouse Wages Expense

38,900

 

Warehouse Supplies Expense

1,790

 

Depreciation Expense—Warehouse Equipment

1,400

 

Salaries Expense—Sales

67,200

 

Travel and Entertainment Expense

6,300

 

Delivery Wages Expense

26,900

 

Depreciation Expense—Delivery Equipment

2,440

 

Salaries Expense—Office

15,900

 

Office Supplies Expense

1,150

 

Insurance Expense

1,500

 

Utilities Expense

2,400

 

Telephone Expense

1,380

 

Payroll Taxes Expense

15,250

 

Property Taxes Expense

1,750

 

Uncollectible Accounts Expense

1,050

 

Depreciation Expense—Building

3,000

 

Depreciation Expense—Office Equipment

1,020

 

Interest Expense

1,600

 

Totals

$593,452

$593,452

Analyze: What is the gross profit percentage for the period ended December 31, 2013?

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