Question

Barkley Company’s adjusted trial balance on March 31, 2013, its fiscal year-end, follows.


On March 31, 2012, merchandise inventory was $ 37,500. Supplementary records of merchandising activities for the year ended March 31, 2013, reveal the following itemized costs.
Invoice cost of merchandise purchases . . . . . . . . $ 138,500
Purchase discounts received . . . . . . . . . . . . . . . . . 2,950
Purchase returns and allowances . . . . . . . . . . . . . 6,700
Costs of transportation- in . . . . . . . . . . . . . . . . . . 5,750

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.


$1.99
Sales5
Views378
Comments0
  • CreatedNovember 26, 2013
  • Files Included
Post your question
5000