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Name: 1 4 - 2 . Paul Overland, owner of Eggs Etc., had a capital balance of $ 2 3 , 2 5 0 on
Name: Paul Overland, owner of Eggs Etc., had a capital balance of $ on January of the current year. On May he invested an additional
$ in cash. The following asset and liability balances are as of December of the current year; the income and expense figures are for the
current year ended on that date.
The merchandise inventories were: January $; December $ Withdrawals of $ were made by Mr Overland during the
current year.
Instructions:Note: rely on previous chapters also.
Prepare an income statement for the current year.
Compute the percentage of the following items to sales: acost of goods sold, bgross profit on sales, ctotal selling expenses, dtotal general
expenses, etotal operating expenses, fnet income from operations.
Problem
Eggs Etc.
Income Statement for year ending December xx
Income from Sales:
Sales
Cost of Goods Sold:
Merchandise Inventory, Jan xx
Purchases
FreightIn
Delivered Cost of Purchases
Merchandise Available for Sale
Deduct Merchandise Inventory, Dec xx
Cost of Goods Sold
Gross Profit on Sales
Operating Expenses:
Selling Expenses:
Sales Commission Expense
Commissions Payable
Advertising Expense
Store Supplies Expense
Total Selling Expense
General Expenses:
Office Salaries
Office Supplies Expense
Insurance Expense General
Rent Expense
Total General Expenses
d
Total Operating Expenses.
Net Income From Operations
a
b
c
d
e
f
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