Use the data for Cacuango Company in Problem 14-2A to complete the following requirements.

Required

Prepare closing entries as of August 31, 2008.

Problem 14-2A:

Cacuango Company’s adjusted trial balance on August 31, 2008, its fiscal year-end, follows.

On August 31, 2008, merchandise inventory was \($41,000.\)
Required 

1. Compute the company’s net sales for the year.
2. Compute the company’s total cost of net purchases for the year.
3. Prepare a multiple-step income statement that includes separate categories for selling expenses and for general and administrative expenses.
4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.

Transcribed Image Text:

Debit Credit Merchandise inventory, August 31, 2007 Other (noninventory) assets Total liabilities C. Cacuango, Capital C. Cacuango, Withdrawals Sales Sales discounts $ 41,000 130,400 $ 25,000 104,550 8,000 225,600 2.250 Sales returns and allowances 12,000 Purchases 92,000 Purchase discounts 2,000 Purchase returns and allowances 4,500 Transportation-in 4,600 Sales salaries expense 32,000 Rent expense-Selling space 8,000 Store supplies expense 1,500 Advertising expense.. 13,000 Office salaries expense 28,500 Rent expense-Office space 3,600 Office supplies expense 400 Totals. $361,650 $361,650