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The following list of accounts is taken from the December 31, 2020, unadjusted trial balance of Perdu Sales, a business that is owned by Eldon
The following list of accounts is taken from the December 31, 2020, unadjusted trial balance of Perdu Sales, a business that is owned by Eldon Perdu. Credit Debit $ 7,800 9,600 7,800 38,000 $ 9,600 14,640 0 22,560 Cash Merchandise inventory Prepaid selling expense Store equipment Accumulated depreciation, store equipment Accounts payable Salaries payable Eldon Perdu, capital Eldon Perdu, withdrawals Sales Sales returns and allowances Sales discounts Cost of goods sold Sales salaries expense Utilities expense, store Other selling expenses Other administrative expenses 3,400 840,000 31,000 7,800 421,000 92,000 12,400 68,000 188,000 Additional information: Accrued sales salaries amount to $3,000. Prepaid selling expenses of $5,100 have expired. Depreciation for the period is $2,300. Required: Assuming a perpetual inventory system, complete the following: a. Journalize the adjusting journal entries. View transaction list X: 1 Record the accrual of sales salaries. 2 Record the selling expenses incurred for the year. 3 Record the depreciation expenses for the year. bit Note : journal entry has been entered View transaction list Journal entry worksheet 1 2 3 > Record the accrual of sales salaries. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2020 Record entry Clear entry View general journal b. Prepare a classified multiple-step income statement for the year ended December 31, 2020. PERDU SALES Income Statement For Year Ended December 31, 2020 0 Operating expenses: Selling expenses: Total selling expenses $ 0 Total operating expenses 0 Analysis Component: Assume that for the year ended December 31, 2019, net sales were $580,000; operating expenses were $336,000; and there was a loss of $13,000. Calculate the company's gross profit ratios for 2019 and 2020. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Gross Profit % 2019 2020 %
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