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In: Accounting

Good to Go Auto Products distributes automobile parts to service stations and repair shops. The adjusted...

Good to Go Auto Products distributes automobile parts to service stations and repair shops. The adjusted trial balance data that follows is from the firm’s worksheet for the year ended December 31, 2019.

Accounts   Debit   Credit
Cash   $   98,400              
Petty Cash Fund      600              
Notes Receivable, due 2020      12,000              
Accounts Receivable      139,600              
Allowance for Doubtful Accounts            $   3,200     
Interest Receivable      120              
Merchandise Inventory      127,900              
Warehouse Supplies      2,700              
Office Supplies      640              
Prepaid Insurance      4,040              
Land      15,400              
Building      104,000              
Accumulated Depreciation—Building               16,400     
Warehouse Equipment      19,200              
Accumulated Depreciation—Warehouse Equipment               9,200     
Office Equipment      8,800              
Accumulated Depreciation—Office Equipment               3,600     
Notes Payable, due 2020               14,400     
Accounts Payable               56,300     
Interest Payable               340     
Loans Payable—Long-Term               14,000     
Mortgage Payable               17,000     
Colin O’Brien, Capital (Jan. 1)               321,020     
Colin O’Brien, Drawing      70,050              
Income Summary      130,800         127,900     
Sales               1,098,300     
Sales Returns and Allowances      7,800              
Interest Income               520     
Purchases      457,000              
Freight In      9,200              
Purchases Returns and Allowances               13,050     
Purchases Discounts               8,640     
Warehouse Wages Expense      108,000              
Warehouse Supplies Expense      5,200              
Depreciation Expense—Warehouse Equipment      2,800              
Salaries Expense—Sales      151,100              
Travel Expense      23,400              
Delivery Expense      36,825              
Salaries Expense—Office      84,400              
Office Supplies Expense      1,160              
Insurance Expense      9,275              
Utilities Expense      7,400              
Telephone Expense      3,220              
Payroll Taxes Expense      31,000              
Building Repairs Expense      3,100              
Property Taxes Expense      15,800              
Uncollectible Accounts Expense      2,980              
Depreciation Expense—Building      5,000              
Depreciation Expense—Office Equipment      1,560              
Interest Expense      3,400              
Totals   $   1,703,870      $   1,703,870     


Required:

Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.
Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the period.
Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than one year.

Analyze:
What percentage of total operating expenses is attributable to warehouse expenses?

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