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In: Accounting

Insurance expense $10,000 Sales returns and allowances 22,400 Bad debt expense 6,000 Accounts payable 81,000 Accounts...

Insurance expense $10,000
Sales returns and allowances 22,400
Bad debt expense 6,000
Accounts payable 81,000
Accounts receivable 108,590
Allowance for doubtful accounts 8,500
Accumulated depreciation – equipment 27,740
Depreciation expense 1,200
Interest revenue 2,100
Cash 80,970
Common stock (10,000 shares outstanding) 100,000
Cost of goods sold 598,550
Dividends declared 18,000
Equipment 139,450
General expenses 114,250
Dividends payable 2,000
Sales discounts 23,000
Interest expense 5,600
Paid-in capital in excess of par 110,000
Marketable Securities 12,000
Merchandise inventory 154,250
Prepaid insurance 11,225
Salaries expense 42,100
Retained earnings ?
Dividend Revenue 10,000
Salaries Payable 12,350
Sales 983,900
Selling expenses 139,210

The selling expenses and general expense categories above are a combination of numerous accounts not needed to be listed separately (they are mainly composed of senior executives’ salaries and other compensation items). If you do not know if an account is selling or general/admin. then split the dollar amount 50/50 between the 2 categories. This only matters in the preparation of the multi-step income statement.

Needed

A Single Step income statement

Multiple-step income statement

Statement of retained earnings

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Expert Solution

ekkarill92 answered 9 months ago
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