Question
The following amounts appear on the trial balance of Valentine Variety Store, Inc. as of December 31, 20x2, the end of its fiscal year Debit
The following amounts appear on the trial balance of Valentine Variety Store, Inc. as of December 31, 20x2, the end of its fiscal year
Debit | Credit | |
Cash | $4,000 | |
Merchandise Inventory | $15,000 | |
Other assets | $8,000 | |
Liabilities | $4,000 | |
Common stock | $5,000 | |
Retained earnings | $7,300 | |
Sales | $80,000 | |
Sales return and allowance | $600 | |
Cost of goods sold | $47,700 | |
General and administrative expense | $8,000 | |
Selling expenses | $13,000 | |
Totals | $96,300 | $96,300 |
On December 31, 20x1, the companys merchandise inventory amounted to $13,000. Supplementary records of merchandise activities during the 20x2 year disclosed the following:
Invoice cost of merchandise purchases $48,500
Purchase discount received 900
Purchase returns and allowances received 400
Cost of transportation -in 2,500
Required:
Using the data above, complete the income statement for valentine Variety Store Inc. for December 31, 20x2 using the multiple step method
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