Oregon Distributors, whose accounting year ends on December 31, had the following normal balances in its ledger accounts at December 31. Cash $36.000 Accounts Receivable 101,200 Inventory 90,200 Prepaid Insurance 7920 Office Supplies 5,280 Furniture & Fixtures 30,800 Accumulated Depreciation - Furn. & Fixtures 11,880 Delivery Equipment 77,000 Accumulated Depreciation - Delivery Equipment 26,840 Accounts Payable 76,340 Long-term Notes Payable 33.000 Common Stock 110,000 Retained Earnings 46,200 Sales Revenue 1.269,400 Cost of Goods Sold 903,320 Utilities Expense 9,460 Sales Salaries Expense 119,000 Delivery Expense 40,480 28,820 Advertising Expense 33.000 Rent Expense 12,100 Income Tax Expense 79,000 Office Salaries Expense During the year, the accounting department prepared monthly statements but no adjusting entries were made in the journals and ledgers. Data for the year-end procedures are as follows: Prepaid Insurance, December 31 $2,400 Depreciation Expense on furniture and fixures for year 2,100 Depreciation Expense on delivery equip. for the year 11,000 Salaries Payable, December 31 ($1.200 Sales and $400 Office) 1,600 Office Supplies on hand, December 31 1,800 Required a. Record the necessary adjusting entries at December 31. b. Prepare a multi-step income statement for the year. Combine all the operating expenses into one line on the income statement for selling general and admini expenses. Journal Entries Income Statement General Journal Description Ref. Debit Credit Date Dec. 31 To record expired insurance. To record depreciation expense for furniture for the year. To record depreciation expense for delivery equip. for the year. 31 Sales Salaries Expense To record accrued salaries at December 31. To record office supplies used. Journal Entries Income Statement OREGON DISTRIBUTORS Income Statement For the Year Ended December 31 Gross Profit on Sales Operating Expenses Income before Income Taxes Net Income Oregon Distributors, whose accounting year ends on December 31, had the following normal balances in its ledger accounts at December 31. Cash $36.000 Accounts Receivable 101,200 Inventory 90,200 Prepaid Insurance 7920 Office Supplies 5,280 Furniture & Fixtures 30,800 Accumulated Depreciation - Furn. & Fixtures 11,880 Delivery Equipment 77,000 Accumulated Depreciation - Delivery Equipment 26,840 Accounts Payable 76,340 Long-term Notes Payable 33.000 Common Stock 110,000 Retained Earnings 46,200 Sales Revenue 1.269,400 Cost of Goods Sold 903,320 Utilities Expense 9,460 Sales Salaries Expense 119,000 Delivery Expense 40,480 28,820 Advertising Expense 33.000 Rent Expense 12,100 Income Tax Expense 79,000 Office Salaries Expense During the year, the accounting department prepared monthly statements but no adjusting entries were made in the journals and ledgers. Data for the year-end procedures are as follows: Prepaid Insurance, December 31 $2,400 Depreciation Expense on furniture and fixures for year 2,100 Depreciation Expense on delivery equip. for the year 11,000 Salaries Payable, December 31 ($1.200 Sales and $400 Office) 1,600 Office Supplies on hand, December 31 1,800 Required a. Record the necessary adjusting entries at December 31. b. Prepare a multi-step income statement for the year. Combine all the operating expenses into one line on the income statement for selling general and admini expenses. Journal Entries Income Statement General Journal Description Ref. Debit Credit Date Dec. 31 To record expired insurance. To record depreciation expense for furniture for the year. To record depreciation expense for delivery equip. for the year. 31 Sales Salaries Expense To record accrued salaries at December 31. To record office supplies used. Journal Entries Income Statement OREGON DISTRIBUTORS Income Statement For the Year Ended December 31 Gross Profit on Sales Operating Expenses Income before Income Taxes Net Income
