Sales Less: Unearned revenue Purchase discounts Total revenue Cost of goods sold Purchases BLUE SPRUCE COMPANY Income Statement December 31, 2021 Less: Purchase returns and allowances Net purchases Add: Sales returns and allowances Cost of goods available for sale Add: Freight out Cost of selling merchandise $5,400 3,600 231,500 3,900 235,400 7,500 242,900 9,500 $396,000 9,000 387,000 252,400 MALIAR Operating expenses Freight in Insurance expense Interest expense Rent expense Salaries expense Total operating expenses Profit margin Other revenues Interest revenue Investment by owner Other expenses Depreciation expense Drawings by owner Profit from operations $1,400 3,400 7,100 48.500 4,600 10,600 2,500 18,100 42,200 4,800 55,600 134,000 78,000 56,600 (50,800) $5,800 Cash Year Ended December 31, 2021 Accounts receivable Merchandise inventory, January 1, 2021 Merchandise inventory, December 31, 2021 Assets Equipment Less: loan payable (for equipment purchase) Total assets Sales discounts Total liabilities Long-term investment Accumulated depreciation-equipment $71,000 Liabilities and Owner's Equity Owner's equity Total liabilities and owner's equity 49,600 $16,400 7,900 29,600 24,100 21,400 $99,400 $49,600 21,300 2,800 73,700 25,700 $99,400 Sales Less Sales Returns and Allowances Cost of Goods Sold BLUE SPRUCE COMPANY Income Statement For the Year Ended December 31, 2021 + -/6 E