BizKid Company’s adjusted trial balance on August 31, 2005, its fiscal year-end, follows:

On August 31, 2004, merchandise inventory was $25,000. Supplementary records of merchandising activities for the year ended August 31, 2005, reveal the following itemized costs:

Required 1. Compute the company’s net sales for the year.
2. Compute the company’s total cost of merchandise purchased 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.

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Merchandise inventory Other (noninventory) assets Total liabilities N. Kidman, Capital Debit Credit $ 31,000 120,400 $ 35,000 101,650 N. Kidman, Withdrawals 8,000 Sales... 212,000 Sales discounts 3,250 Sales returns and allowances 14,000 Cost of goods sold 82,600 Sales salaries expense 29,000 Rent expense-Selling space 10,000 Store supplies expense 2,500 Advertising expense 18,000 Office salaries expense 26,500 Rent expense-Office space 2,600 Office supplies expense 800 Totals $348,650 $348,650