The following list of accounts is taken from the December 31, 2023, unadjusted trial balance of Perdu
Question:
The following list of accounts is taken from the December 31, 2023, unadjusted trial balance of Perdu Sales, a business that is owned by Eldon Perdu.
Additional information:
Accrued sales salaries amount to $3,200. Prepaid selling expenses of $5,200 have expired. Depreciation for the period is $2,500.
Required
Assuming a perpetual inventory system, complete the following:
a. Journalize the adjusting journal entries.
b. Prepare a classified multiple-step income statement for the year ended December 31, 2023.
Analysis Component:
Assume that for the year ended December 31, 2022, net sales were $600,000; operating expenses were $344,000; and there was a loss of $14,000. Calculate and compare the company’s gross profit ratios for 2022 and 2023.
Step by Step Answer:
Fundamental Accounting Principles Volume 1
ISBN: 9781260881325
17th Canadian Edition
Authors: Kermit D. Larson, Heidi Dieckmann, John Harris