In: Accounting
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?