At the end of Gordman Department Store’s fiscal year on December 31, 2011, these accounts appeared in its adjusted trial balance.
|
Freight in |
$ 5,600 |
|
Merchandise Inventory |
40,500 |
|
Purchases |
447,000 |
|
Purchase Discounts |
12,000 |
|
Purchase Returns and Allowances |
6,400 |
|
Sales |
718,000 |
|
Sales Returns and Allowances |
8,000 |
Additional facts:
1. Merchandise inventory on December 31, 2011, is $75,000.
2. Note that Gordman Department Store uses a periodic system.
Instructions
Prepare an income statement through gross profit for the year ended December 31, 2011.