Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following is a list of the accounts and balances taken from the adjusted trial balance at December 31, 2021 for, Meilleur Merchants. The list

The following is a list of the accounts and balances taken from the adjusted trial balance at December 31, 2021 for, Meilleur Merchants. The list of accounts is in alphabetical order. All accounts have normal balances. Meilleur uses a periodic inventory system and the earnings approach to recognize revenue.

Account Balance Dec. 31
1 Accounts payable $15,000
2 Accounts receivable 30,000
3 Accumulated depreciationbuilding 15,500
4 Accumulated depreciationequipment 10,000
5 Advertising expense 4,300
6 Building 84,600
7 S. Meilleur, capital 75,000
8 S. Meilleur, drawings 28,300
9 Cash 10,190
10 Depreciation expense 5,700
11 Equipment 24,500
12 Freight in 3,400
13 Freight out 630
14 Insurance expense 1,150
15 Interest expense 1,720
16 Interest revenue 1,440
17 Land 12,000
18 Merchandise inventory, beginning 90,200
19 Mortgage payable 57,600
20 Prepaid insurance 2,100
21 Property tax expense 1,500
22 Property taxes payable 600
23 Purchase discounts 6,300
24 Purchase returns and allowances 14,600
25 Purchases 267,900
26 Rent revenue 1,600
27 Salaries expense 41,600
28 Salaries payable 650
29 Sales 424,200
30 Sales discounts 15,500
31 Sales returns and allowances 18,000
32 Unearned revenue 23,000
33 Utilities expense 2,200

Additional information: According to the year-end physical count, the merchandise inventory had a balance of $104,000. Prepare a multiple-step income statement for Meilleur Merchants for the year ended December 31, 2021.

image text in transcribed

image text in transcribed

MEILLEUR MERCHANTS Income Statement For the Year Ended December 31, 2021 , Sales revenues Sales Less Sales Returns and Allowances Sales Discounts Net Sales Cost of Goods Sold Purchase Discounts Less LLL Home more LE A NO IN ll

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions