Comprehensive Problem 2 Part 8:

You must complete parts 1, 2, 3, 4, 6 and 7 before attempting to complete part 8.

Note: part 5 is optional.

1. Prepare an income statement

110 Cash 112 Accounts Receivable 115 Merchandise inventory 116 Prepaid Insurance 117 Store Supplies 123 Store Equipment 124 Accumulated Depreciation-Store Equipment 210 Accounts Payable 211 Salaries Payable 310 Capital Stock 311 Retained Earnings 312 Dividends 313 ncome Summary 410 Sales 411 Sales Returns and Allowances 412 Sales Discounts 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Insurance Expense 539 Miscellaneous Administrative Expense 83,600 233,900 602,400 16,800 11 400 569,500 56,700 96,600 100,000 585,300 135,000 5,221,100 92,700 59,400 2,823,000 664,800 281,000 12,600 382,100 83,700 7,800