Albin Companys adjusted trial balance on March 31, 2011, its fiscal year-end, follows. On March 31, 2010,

Albin Company’s adjusted trial balance on March 31, 2011, its fiscal year-end, follows.

On March 31, 2010, merchandise inventory was $37,500. Supplementary records of merchandising activities for the year ended March 31, 2011, reveal the following itemized costs.
Invoice cost of merchandise purchases . . . . . . . . $136,500
Purchase discounts received . . . . . . . . . . . . . . . . . . . 2,850
Purchase returns and allowances . . . . . . . . . . . . . . . 6,600
Costs of transportation-in . . . . . . . . . . . . . . . . . . . . . 5,850

Required
1. Calculate the company’s net sales for the year.
2. Calculate the company’s total cost of merchandise purchased 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 administrativeexpenses.

Transcribed Image Text:

Debit Credit Merchandise inventory46,500 Other (noninventory) assets.. Total liabilities ...._.. R. Albin, Capital R. Albin, Withdrawals 190.600 52500 152,475 2.000 Sales. 318,000 Sales returns and allowances. Cost of goods sold. Sales salaries expense Rent expense Selling space.. Store supplies expense .. Advertising expense.. Office salaries expense Rent expense-Office space. Office supplies expense4n Totals ._.... 4.875 21.000 23,900 43,500 15.000 3.750 27.000 39,750 3.900 1.200 $522975 $522.975