Required: Prepare a classified multiple-step income statement. (Input all amounts es positive velues. Do not round Intermedilate ans Round your final answers to nearest whole dollar.) answer. WOODSTOCK STORE Income Statement For Year Ended December 31, 2020

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Debit
$ 3,580
31,400
1,715
Credit
Cash
Merchandise inventory
Store supplies
Office supplies
Prepaid insurance
Store equipment
Accumulated depreciation, store equipment
Office equipment
Accumulated depreciation, office equipment
Accounts payable
Zen Woodstock, capital
Zen Woodstock, withdrawals
Rental revenue
645
3,960
57,615
$ 6,750
13,100
6,550
4, 000
52, 000
31, 500
14,600
501,520
Sales
Sales returns and allowances
2,915
5,190
331, 315
Sales discounts
Purchases
2,140
4,725
Purchase returns and allowances
Purchase discounts
Transportation-in
Sales salaries expense
Rent expense, selling space
Advertising expense
Store supplies expense
Depreciation expense, store equipment
Office salaries expense
Rent expense, office space
Office supplies expense
Insurance expense
Depreciation expense, office equipment
3,690
34,710
24,080
6,400
27,630
13,000
Totals
$592, 285 $592, 285
a. The balance on January 1, 2020, in the Store Supplies account was $480. During the year, $1,235 of store supplies were purchased
and debited to the Store Supplies account. A physical count on December 31, 2020. shows an ending balance of $180.
b. The balance on January 1, 2020, in the Office Supplies account was $50. Office supplies of $595 were purchased in 2020 and
added to the Office Supplies account. An examination of the office supplies at year-end revealed that $590 had been used.
c. The balance in the Prepaid Insurance account represents a policy purchased on September 1. 2020; it was valid for 12 months from
that date.
d. The store equipment was originally estimated to have a useful life of 12 years and a residual value of $3615.
e. When the office equipment was purchased, it was estimated that it would last four years and have no residual value.
1. Ending merchandise inventory, $29.000.
Transcribed Image Text:Debit $ 3,580 31,400 1,715 Credit Cash Merchandise inventory Store supplies Office supplies Prepaid insurance Store equipment Accumulated depreciation, store equipment Office equipment Accumulated depreciation, office equipment Accounts payable Zen Woodstock, capital Zen Woodstock, withdrawals Rental revenue 645 3,960 57,615 $ 6,750 13,100 6,550 4, 000 52, 000 31, 500 14,600 501,520 Sales Sales returns and allowances 2,915 5,190 331, 315 Sales discounts Purchases 2,140 4,725 Purchase returns and allowances Purchase discounts Transportation-in Sales salaries expense Rent expense, selling space Advertising expense Store supplies expense Depreciation expense, store equipment Office salaries expense Rent expense, office space Office supplies expense Insurance expense Depreciation expense, office equipment 3,690 34,710 24,080 6,400 27,630 13,000 Totals $592, 285 $592, 285 a. The balance on January 1, 2020, in the Store Supplies account was $480. During the year, $1,235 of store supplies were purchased and debited to the Store Supplies account. A physical count on December 31, 2020. shows an ending balance of $180. b. The balance on January 1, 2020, in the Office Supplies account was $50. Office supplies of $595 were purchased in 2020 and added to the Office Supplies account. An examination of the office supplies at year-end revealed that $590 had been used. c. The balance in the Prepaid Insurance account represents a policy purchased on September 1. 2020; it was valid for 12 months from that date. d. The store equipment was originally estimated to have a useful life of 12 years and a residual value of $3615. e. When the office equipment was purchased, it was estimated that it would last four years and have no residual value. 1. Ending merchandise inventory, $29.000.
Requlred:
Prepare a classified multiple-step income statement. (Input all amounts es positive values. Do not round Intermedlate answer.
Round your final answers to nearest whole dollar.)
WOODSTOCK STORE
Income Statement
For Year Ended December 31, 2020
Cost of goods sold:
Cost of goods sold
Operating expenses:
Selling expenses:
Transcribed Image Text:Requlred: Prepare a classified multiple-step income statement. (Input all amounts es positive values. Do not round Intermedlate answer. Round your final answers to nearest whole dollar.) WOODSTOCK STORE Income Statement For Year Ended December 31, 2020 Cost of goods sold: Cost of goods sold Operating expenses: Selling expenses:
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