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Can you check if my entries on the income statement is correct... Problem- The following accounts were taken from the ledger of Dada Merchandising as
Can you check if my entries on the income statement is correct...
Problem- The following accounts were taken from the ledger of Dada Merchandising as of May 31, 2012, Required 1. Income Statement with supporting notes D MERCHANDISING INCOME STATEMENT FOR THE YEAR ENDED MAY 31, 2012 AMOUNT AMOUNT PARTICULARS REVENUE SALES LESS: SALES DISCOUNT LESS: SALES RETURN AND ALLOWANCES NET SALES 600,000.00 (3,600.00) (30,000.00) 566,400.00 OTHER INCOME DIVIDEND INCOME RENT INCOME TOTAL REVENUE AND INCOME (a) 4,000.00 6,000.00 576,400.00 COST OF SALES INVENTORY, MAY 1 PURCHASES ADD: FREIGHT IN LESS: PURCHASE DISCOUNT LESS: PURCHASE RETURN AND ALLOWANCES LESS: INVENTORY, MAY 31 COST OF SALES (b) 30,000.00 350,000.00 1,000.00 (3,000.00) (20,000.00 (80,000.00) 278,000.00 Inventory, May 1 Inventory, May 31 Office Supplies Used Office Supplies Inventory Store Supplies Used Store Supplies on Hand Freight in Freight Out Dividend Income Rent Income Interest Expense Purchases Purchase Returns and Allowances Purchase Discount Accounts Payable Notes Payable Taxes Payable Mortgage Payable Miscellaneous Selling Expenses Miscellaneous General Expenses Postage and Telegraph Sales Salaries Office Salaries Advertising Expense Insurance- Office Building Insurance-Store Building Heat, Light and Power Rent Expense Bad Debts Depreciation - Store Building Depreciation - Office Building Cash Notes Receivable Accounts Receivable Allowance for Bad Debts Store Building Accumulated Depreciation- Store Building Office Building Accumulated Depreciation - Office Building Sales Sales Discounts Sales Returns and Allowances Dada, Capital Dada, Drawing Loss from Sale of Office Building 30,000 80.000 5.000 6,000 4,000 6,000 1,000 2.000 4,000 6.000 3.000 350.000 20,000 3,000 25,000 15.000 3,000 300,000 7,000 3,000 1,200 40.000 30,000 800 4,000 6,000 1,400 2,000 1,500 20,000 15.000 40,000 50.000 100.000 8,000 400,000 40,000 600,000 75.000 600,000 3,600 30,000 672,500 6,000 3,000 OPERATING EXPENSES FREIGHT OUT SUPPLIES EXPENSE LOSS FROM SALE OF OFFICE BUILDING DEPRECIATION-STORE BUILDING DEPRECIATION-OFFICE BUILDING BAD DEBTS RENT EXPENSES MISCELLANEOUS SELLING EXPENSES MISCELLANEOUS GENERAL EXPENSES POSTAGE AND TELEGRAPH SALES SALARIES OFFICE SALARIES ADVERTISING EXPENSE INSURANCE- OFFICE BUILDING INSURANCE-STORAGE BUILDING HEAT, LIGHT AND POWER INTEREST EXPENSE TOTAL OPERATING EXPENSE (C) NET PROFIT DURING THE MONTH 2,000.00 5,000.00 3,000.00 20,000.00 15,000.00 1,500.00 2,000.00 7,000.00 3,000.00 1,200.00 40,000.00 30,000.00 800.00 4,000.00 6.000.00 1,400.00 3,000.00 144,900.00 153,500.00Step by Step Solution
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