The following list of accounts is taken from the December 31, 2014, unadjusted trial balance of Perdu

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The following list of accounts is taken from the December 31, 2014, unadjusted trial balance of Perdu Sales, a business that is owned by Eldon Perdu.

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Additional information:
Accrued sales salaries amount to $3,200. Prepaid selling expenses of $5,200 have expired. Depreciation for the period is $2,500.
Required
Assuming a perpetual inventory system:
a. Prepare a work sheet.
b. Prepare a classified multiple-step income statement for the year ended December 31, 2014.
c. Journalize the closing entries.
Analysis Component:
Assume that for the year ended December 31, 2013, net sales were $600,000; operating expenses were $344,000; and there was a net loss of $14,000. Calculate and compare the company's gross profit ratios for 2013 and 2014.
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Related Book For  book-img-for-question

Fundamental Accounting Principles

ISBN: 978-0071051507

Volume I, 14th Canadian Edition

Authors: Larson Kermit, Tilly Jensen

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