FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Using the selected year-end account balances at December 31, 2014, for Lifeline General Store that follow, prepare a multistep 2014 income statement. Show detail of net sales. The company uses the periodic inventory system. Beginning merchandise inventory was $28,000; ending merchandise inventory is $21,000.
Account Name Debit Credit
Sales $309,000
Sales Returns and Allowances $ 15,200
Purchases 114,800
Purchases Returns and Allowances 7,000
Freight-In 5,600
Selling Expenses 56,400
General and Administrative Expenses 37,200
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