Requirement $($Part One$)$

Prepare an income statement for Paula's Posies$,$ a$$ merchandiser, for the year ended December$31,2019$

On December$31,2019,$ her accounting records show the$$ following:

Sales revenue. $..................$

$$53,000$

Utilities for shop. $................$

$$1,900$

Inventory on December $31,2019...$

$$9,200$

Inventory on January $1,2019......$

$$12,800$

Rent for shop. $..................$

$$3,800$

Sales commisions. $..............$

$$5,000$

Purchases of merchandise. $.......$

$$35,000$

Requirements $($Part Two$)$

$1.$

Calculate the Cost of Goods Manufactured for Floral Best Manufacturing for the year ended December$31,2020.$

$2.$

Prepare an income statement for Floral Best Manufacturing for the year ended December$31,2020.$

$3.$

How does the format of the income statement for Floral Best Manufacturing differ from the income statement of Paula's Posies$?$

Data table

At the end of December $2020,$ her accounting records show the$$ following:

Utilities for plant. $...............................$

$$4,600$

Delivery expense. $..............................$

$$3,800$

Sales salaries expense. $.........................$

$$4,200$

Plant janitorial services. $.........................$

$$1,450$

Work in process inventory, December $31,2020......$

$$4,500$

Finished goods inventory, December $31,2019......$

$$0$

Finished goods inventory, December $31,2020......$

$$3,000$

Sales revenue. $.................................$

$$103,000$

Customer service hotline expense. $...............$

$$1,800$

Direct labor. $...................................$

$$26,000$

Direct material purchases. $.......................$

$$36,000$

Rent on manufacturing plant. $....................$

$$8,800$

Raw materials inventory, December $31,2019........$

$$18,000$

Raw materials inventory, December $31,2020........$

$$10,000$

Work in process inventory, December $31,2019......$

$$0$

part$$ Three: Show the ending inventories that would appear on these balance$$ sheets:

$1.$

Paula's Posies at December$31,2019$

$2.$

Floral Best Manufacturing at December$31,2020$