Assignment $3$

The following information is taken from the records of Prabhjot Prince Inc. at June $30,2022,$ its

fiscal year$$end:

Advertising expense $$1,100$

Commissions expense $3,000$

Delivery expense $1,500$

Insurance expense $1,000$

Opening inventory $6,000$

Purchases $37,000$

Purchase returns and allowances $3,100$

Rent expense $2,900$

Salaries expense $4,000$

Sales $($gross$)79,000$

Sales returns and allowances $1,000$

Transportation$$in $2,300$

The merchandise inventory at June $30,2019$ amounted to $$8,000.$

Required:

$1.$ Prepare a classified income statement. Assume all expenses not related to cost of goods sold

are selling expenses.

$2.$ Compute gross profit percentage.