Question
Information from the December 31, 2017, year-end, unadjusted trial balance of Woodstock Store is as follows: Debit Credit Cash $ 3,545 Merchandise inventory 31,445 Store
Information from the December 31, 2017, year-end, unadjusted trial balance of Woodstock Store is as follows:
Debit Credit
Cash $ 3,545
Merchandise inventory 31,445
Store supplies 1,760
Office supplies 690
Prepaid insurance 4,005
Store equipment 57,660
Accumulated depreciation, store equipment $ 6,795
Office equipment 13,145
Accumulated depreciation, office equipment 6,595
Accounts payable 4,045
Zen Woodstock, capital 52,045
Zen Woodstock, withdrawals 31,545
Rental revenue 14,645
Sales 501,565
Sales returns and allowances 2,960
Sales discounts 5,235
Purchases 330,955
Purchase returns and allowances 2,185
Purchase discounts 4,770
Transportation-in 3,735
Sales salaries expense 34,755
Rent expense, selling space 24,045
Advertising expense 6,445
Store supplies expense 0
Depreciation expense, store equipment 0
Office salaries expense 27,675
Rent expense, office space 13,045
Office supplies expense 0
Insurance expense 0
Depreciation expense, office equipment 0
Totals $ 592,645 $ 592,645
a. The balance on January 1, 2017, in the Store Supplies account was $507. During the year, $1,253 of store supplies were purchased and debited to the Store Supplies account. A physical count on December 31, 2017, shows an ending balance of $189.
b. The balance on January 1, 2017, in the Office Supplies account was $59. Office supplies of $631 were bought in 2017 and added to the Office Supplies account. An examination of the office supplies at year-end revealed that $608 had been used.
c. The balance in the Prepaid Insurance account represents a policy purchased on September 1, 2017; it was valid for 12 months from that date.
d. The store equipment was originally estimated to have a useful life of 12 years and a residual value of $2,580.
e. When the office equipment was purchased, it was estimated that it would last 5 years and have no residual value.
f. Ending merchandise inventory, 29,900.
Required: Prepare a classified multi-step income statement. (Input all amounts as positive value. Do not round intermediate answer. Round your final answers to nearest whole dollar.)
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