Albin Company’s adjusted trial balance on March 31, 2011, its fiscal year end, follows.
|
Merchandise inventory |
$ 46,500 |
|
|
Other (noninventory) assets |
190,600 |
|
|
Total liabilities |
|
$ 52,500 |
|
R. Albin, Capital |
|
152,475 |
|
R. Albin, Withdrawals |
2,000 |
|
|
Sales |
318,000 |
|
|
Sales discounts |
4,875 |
|
|
Sales returns and allowances |
21,000 |
|
|
Cost of goods sold |
123,900 |
|
|
Sales salaries expense |
43,500 |
|
|
Rent expense — Selling space |
15,000 |
|
|
Store supplies expense |
3,750 |
|
|
Advertising expense |
27,000 |
|
|
Office salaries expense |
39,750 |
|
|
Rent expense — Office space |
3,900 |
|
|
Office supplies expense |
1,200 |
|
|
Totals |
$522,975 |
$522,975 |
On March 31, 2010, merchandise inventory was $37,500. Supplementary records of merchandising activities for the year ended March 31, 2011, reveal the following itemized costs.
|
Invoice cost of merchandise purchases |
$136,500 |
|
Purchase discounts received |
2,850 |
|
Purchase returns and allowances |
6,600 |
|
Costs of transportation in |
5,850 |
Required
1. Calculate the company’s net sales for the year.
2. Calculate the company’s total cost of merchandise purchased for the year.
3. Prepare a multiple step income statement that includes separate categories for selling expenses and for general and administrative expenses.
4. Prepare a single step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.