Question
Q-2) The list of accounts of Guardian Company contained the following information: Accounts Amount $ Sales 750,000 Sales Returns and Allowances 20,000 Rent Expense 5,000
Q-2) The list of accounts of Guardian Company contained the following information:
Accounts | Amount $ |
Sales | 750,000 |
Sales Returns and Allowances | 20,000 |
Rent Expense | 5,000 |
Purchases | 600,000 |
Sales Discounts | 7,000 |
Purchase Returns and Allowances | 25,000 |
Cost of Goods Sold | ? |
Interest Revenue | 15,000 |
Sales commission | 15,000 |
Purchase Discounts | 11,000 |
Interest Expense | 10,000 |
Freight-out | 2,000 |
Store Salaries Expense | 50,000 |
Freight-in | 19,000 |
Utilities Expense | 28,000 |
Depreciation Expense | 7,000 |
Dividend revenue | 5,000 |
Beginning inventory | 45,000 |
Rent Revenue | 10,000 |
Ending inventory | 55,000 |
Lawsuit defrayal expense | 8000 |
Accumulated depreciation | 15000 |
Instruction:
Use the above information to prepare a multiple-step income statement for the year ended December 31, 2019. (Show the calculation of COGS) (20 marks)
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