3. ComputerGeeks.com is a retail store that sells computers, laptops, supplies, and other electronic devices. The adjusted trial balance data given below is from the firm’s worksheet for the year ended December 31, 20X1.

INSTRUCTIONS 1. Prepare a classified income statement for the year ended December 31, 20X1. The operating expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.

2. Prepare a statement of owner’s equity for the year ended December 31, 20X1. No additional investments were made during the year.

3. Prepare a classified balance sheet as of December 31, 20X1. The mortgage payable extends for more than one year.

Debit Credit Cash $ 12,200 Petty Cash Fund 100 Notes Receivable, due 20X2 3,200 Accounts Receivable 19,250 Allowance for Doubtful Accounts $ 2,250 Merchandise Inventory 35,400 Warehouse Supplies 775 Office Supplies 780 Prepaid Insurance 2,200 Land 7,642 Building 48,500 Accumulated Depreciation—Building 13,000 Warehouse Equipment 8,000 Accumulated Depreciation—Warehouse Equipment 2,300 Delivery Equipment 16,400 Accumulated Depreciation—Delivery Equipment 3,600 Office Equipment 6,000 Accumulated Depreciation—Office Equipment 2,500 Notes Payable, due 20X2 4,000 Accounts Payable 14,140 Interest Payable 240 Mortgage Payable 15,950 Loans Payable, Long-term 4,000 Bruce Zaro, Capital (Jan. 1) 60,940 Bruce Zaro, Drawing 24,000 Income Summary 33,125 35,400 Sales 429,800 Sales Returns and Allowances 3,150 Interest Income 462 Purchases 179,600 Freight In 2,200 Purchases Returns and Allowances 2,520 Purchases Discounts 2,350 Warehouse Wages Expense 38,900 Warehouse Supplies Expense 1,790 Depreciation Expense—Warehouse Equipment 1,400 Salaries Expense—Sales 67,200 Travel and Entertainment Expense 6,300 Delivery Wages Expense 26,900 Depreciation Expense—Delivery Equipment 2,440 Salaries Expense—Office 15,900 Office Supplies Expense 1,150 Insurance Expense 1,500 Utilities Expense 2,400 Telephone Expense 1,380 Payroll Taxes Expense 15,250 Property Taxes Expense 1,750 Uncollectible Accounts Expense 1,050 Depreciation Expense—Building 3,000 Depreciation Expense—Office Equipment 1,020 Interest Expense 1,600 Totals $593,452 $593,452 Analyze: What is the gross profit percentage for the year ended December 31, 20X1?