Custom Auto Parts started this year with the following balances:

Cash: $60,000

Merchandise Inventory: $8,000

Land: $12,000

Accounts Payable: $0

Common Stock: $50,000

Retained Earnings: $30,000

During the year they had the following transactions:

Purchase $60,000 of merchandise inventory on account, terms 2/10,n/30.

The goods delivered in Event 1 were delivered FOB shipping point. Freight costs of $1,500 were paid in cash by the responsible party

Returned $3,000 of goods purchased in Event 1

Paid the balance due on the goods purchased in Event 1 and recorded the cash discount.

Recognized $59,000 of cash revenue from the sale of merchandise and recognized $45,000 of cost of goods sold from such sale.

The goods sold in Event 5 were delivered to the customers FOB destination. Freight costs of $1,400 were paid in cash by the responsible party.

Paid $9,000 in cash for selling and administrative expenses.

Sold the land for $14,500 in cash.

After completing the recording of the transactions, prepare a multistep income statement. Include common size percentages on the income statement.

UNIT 4A EXCEL SLIDE:

A B C D E F G Custom Auto Parts Income Statement For the Year Ended Dec 31