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

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

On August 31, 2010, merchandise inventory was $25,000. Supplementary records of merchandising activities for the year ended August 31, 2011, reveal the following itemized costs.
Invoice cost of merchandise purchases . . . . . . . . $91,000
Purchase discounts received . . . . . . . . . . . . . . . . . . 1,900
Purchase returns and allowances . . . . . . . . . . . . . . 4,400
Costs of transportation-in . . . . . . . . . . . . . . . . . . . 3,900

Required
1. Compute the company’s net sales for the year.
2. Compute 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 inventory.$ 31,000 Other (noninventory) assets120.400 Total liabilities .. $35.000 101.650 N. Kidman, Withdrawals.. Sales.ANAN.... Sales discounts Sales returns and allowances .. Cost of goods sold.... Sales salaries expense.... Rent expense-Selling space···· Store supplies expense .. 8,000 212,000 3,250 4,000 ...82.600 29.000 0,000 8,000 26.500 Office salaries expense Rent expense-Office space Office supplies expense Totals $348.650 $348,650