272 Chapter 5 Exercise 5-7 Fill in the blanks in the following income statements. Identify any losses by putting the Calculating expenses amount in parentheses. and income (LO 1, 2) b Sales .. $40.000 $85.000 $24,000 $ 59.000 Cost of goods sold: Beginning inventory. $ 4.000 $ 6,200 $ 5,000 $ 3,500 $ 6,400 Purchases 24,000 16,000 14,000 Ending inventory ? (5,400) (6,000) (3,300) Cost of goods sold $22.700 $31,800 $ ? $14,000 Gross profit . . . . $ ? $ 2,500 $22,800 $ ? Expenses . . 6.000 21.300 8, 100 1.300 15,000 Net income (loss) $31,900 $ (5,600) $21,500 Exercise 5-8 The following accounts and balances are taken from the year-end adjusted trial balance of Multiple-step income the Vintage Shop, a single proprietorship. Use the information in these columns to com- statement and other plete the requirements. calculations (LO 3) Debit Credit Merchandise inventory $ 28,000 Sales . . . . . . . - . . $425.000 Sales returns and allowances 16,500 Sales discounts . . 4,000 Purchases . . . . . 240,000 Purchases returns and allowances 18,000 Purchases discounts . . 2.000 Transportation-in . . 6,000 Selling expenses 35,000 General and administrative expenses . 95,000 The count of the ending inventory shows that its cost is $37,000