Question

Frisco Company’s adjusted trial balance on March 31, 2009, its fiscal year-end, follows.
On March 31, 2008, merchandise inventory was $27,841. Supplementary records of merchandising activities for the year ended March 31, 2009, reveal the following itemized costs.
Invoice cost of merchandise purchases . . . . . . . . $101,430
Purchase discounts received . . . . . . . . . . . . . . . . . 2,130
Purchase returns and allowances . . . . . . . . . . . . . 4,868
Costs of transportation-in . . . . . . . . . . . . . . . . . . . 3,900
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 administrative expenses.


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  • CreatedMarch 18, 2015
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