Relentless Corporation, a merchandising business, has provided the following information at the end of the year on
Question:
Relentless Corporation, a merchandising business, has provided the following information at the end of the year on December 31, 2014:
Gross sales $ 150,000
Sales returns and allowances 10,000
Beginning inventory 15,000
Ending inventory 20,000
Purchases 85,000
Selling expenses 14,000
Administrative expenses 16,000
Rental income (non-operating) 9,000
Interest expenses 3,000
Beginning capital 60,000
Withdrawals during the year 6,000
Income tax paid 3,000
Required:
A. Prepare an income statement for the period.
B. The owner decides to keep 50% of the balance of the net income in the retained earnings account. Prepare the owner’s equity section of the balance sheet at the end of the accounting period.
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella