Meilleur uses a perpetual inventory system. The following is a list of the accounts and balances taken
Question:
Meilleur uses a perpetual inventory system.
The following is a list of the accounts and balances taken from the adjusted trial balance at December 31, 2017 for Meilleur Merchants. The list of accounts is in alphabetical order. All accounts have normal balances.
| | Account | | Balance | |
1 | | Accounts payable | | 15,000 | |
2 | | Accounts receivable | | 30,000 | |
3 | | Accumulated depreciation—building | | 15,500 | |
4 | | Accumulated depreciation—equipment | | 10,000 | |
5 | | Advertising expense | | 4,100 | |
6 | | Building | | 84,600 | |
7 | | S. Meilleur, capital | | 75,000 | |
8 | | S. Meilleur, drawings | | 28,300 | |
9 | | Cash | | 4,500 | |
10 | | Cost of goods sold | | 234,900 | |
11 | | Depreciation expense | | 5,700 | |
12 | | Equipment | | 24,500 | |
13 | | Freight out | | 640 | |
14 | | Insurance expense | | 1,550 | |
15 | | Interest expense | | 2,120 | |
16 | | Interest revenue | | 1,240 | |
17 | | Land | | 12,000 | |
18 | | Merchandise inventory | | 105,000 | |
19 | | Mortgage payable | | 57,600 | |
20 | | Prepaid insurance | | 2,100 | |
21 | | Property tax expense | | 1,100 | |
22 | | Property taxes payable | | 600 | |
23 | | Rent revenue | | 1,500 | |
24 | | Salaries expense | | 42,000 | |
25 | | Salaries payable | | 650 | |
26 | | Sales | | 420,200 | |
27 | | Sales discounts | | 15,200 | |
28 | | Sales returns and allowances | | 17,800 | |
29 | | Unearned revenue | | 23,000 | |
30 | | Utilities expense | | 1,700 | |
Prepare a multiple-step income statement for Meilleur Merchant for the year ended December 31, 2017.
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac