Assignment 5 Accounting for Merchandising Activities

Question 1

The following amounts appeared on the Orange Cos adjusted trial balance as of December 31, the end of its fiscal year:

	Orange Co
	Trial Balance
	December 31
	Accounts
		Debit	Credit
	Merchandise inventory	16,200
	Other assets	258,800
	Liabilities		78,600
	Brenda Davison, capital		205,360
	Brenda Davison, withdrawals	65,200
	Interest income		1,140
	Sales		426,000
	Sales discounts	6,700
	Sales returns and allowances	28,200
	Cost of goods sold	169,500
	Sales salaries expense	52,200
	Rent expense, selling space	19,200
	Store supplies expense	5,200
	Advertising expense	29,600
	Office salaries expense	53,200
	Rent expense, office space	5,400
	Office supplies expense	1,700
	Totals	$ 711,100	$ 711,100

Present a multiple-step income statement and a condensed single-step income statement.