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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:14-2. Paul Overland, owner of Eggs Etc., had a capital balance of $23,250 on January 1 of the current year. On May 1 he invested an additional
$7,500 in cash. The following asset and liability balances are as of December 31 of the current year; the income and expense figures are for the
current year ended on that date.
The merchandise inventories were: January 1, $26,250; December 31, $33,000. Withdrawals of $13,500 were made by Mr. Overland during the
current year.
Instructions:(Note: rely on previous chapters also.)
(1)Prepare an income statement for the current year.
(2)Compute the percentage of the following items to sales: (a)cost of goods sold, (b)gross profit on sales, (c)total selling expenses, (d)total general
expenses, (e)total operating expenses, (f)net income from operations.
Problem 14-2.
Eggs Etc.
Income Statement for year ending December 31,19xx
Income from Sales:
Sales
Cost of Goods Sold:
Merchandise Inventory, Jan 1,19xx
Purchases
Freight-In
Delivered Cost of Purchases
Merchandise Available for Sale
Deduct Merchandise Inventory, Dec 31,19xx
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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