1.

Petersen Book Store entered into the transactions listed below.

July	6	Purchased $1,600 of merchandise on credit, terms n/30.
8	Returned $100 of the items purchased on July 6.
9	Paid freight charges of $90 on the items purchased July 6.
19	Sold merchandise on credit for $4,400, terms 1/10, n/30. The merchandise had an inventory cost of $2,700.
22	Of the merchandise sold on July 19, $300 of it was returned. The items had cost the store $150.
28	Received payment in full from the customer of July 19.
31	Paid for the merchandise purchased on July 6.

Prepare Petersens necessary entries, assuming use of the perpetual inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
July. 6
8
9
19
(To record credit sale)
(To record cost of good sold)
22
(To record credit granted for returned goods)
(To record cost of good returned)
28
31

2.

The adjusted trial balance of McCoy Company included the following selected accounts:

Debit	Credit
Sales Revenue	$645,000
Sales Returns and Allowances	$50,000
Sales Discounts	9,500
Cost of Goods Sold	396,000
Freight-Out	2,000
Advertising Expense	15,000
Interest Expense	19,000
Salaries and Wages Expense	84,000
Utilities Expense	23,000
Depreciation Expense	3,500
Interest Revenue	25,000

(a) Use the above information to prepare a multiple-step income statement for the year ended December 31, 2014. (List other revenues before other expenses.)

MCCOY COMPANY Income Statement For the Year Ended December 31, 2014
	$
LessAdd:
	$
DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31SalesTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome Before Income TaxesOther Revenues and GainsOther Expenses and LossesIncome From Operations
DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31SalesTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome Before Income TaxesOther Revenues and GainsOther Expenses and LossesIncome From Operations
DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31SalesTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome Before Income TaxesOther Revenues and GainsOther Expenses and LossesIncome From Operations
	$
DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31SalesTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome Before Income TaxesOther Revenues and GainsOther Expenses and LossesIncome From Operations
DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31SalesTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome Before Income TaxesOther Revenues and GainsOther Expenses and LossesIncome From Operations
DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31SalesTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome Before Income TaxesOther Revenues and GainsOther Expenses and LossesIncome From Operations
DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31SalesTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome Before Income TaxesOther Revenues and GainsOther Expenses and LossesIncome From Operations
DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31SalesTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome Before Income TaxesOther Revenues and GainsOther Expenses and LossesIncome From Operations	$