Question

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 $ 97,600
Petty Cash Fund 400
Notes Receivable, due 2020 17,000
Accounts Receivable 138,800
Allowance for Doubtful Accounts $ 2,400
Interest Receivable 170
Merchandise Inventory 127,100
Warehouse Supplies 1,900
Office Supplies 560
Prepaid Insurance 3,240
Land 14,600
Building 100,000
Accumulated Depreciation—Building 16,000
Warehouse Equipment 18,400
Accumulated Depreciation—Warehouse Equipment 8,800
Office Equipment 8,000
Accumulated Depreciation—Office Equipment 3,200
Notes Payable, due 2020 13,600
Accounts Payable 55,500
Interest Payable 260
Loans Payable—Long-Term 10,000
Mortgage Payable 13,000
Colin O’Brien, Capital (Jan. 1) 322,110
Colin O’Brien, Drawing 69,250
Income Summary 130,000 127,100
Sales 1,082,300
Sales Returns and Allowances 7,000
Interest Income 440
Purchases 449,000
Freight In 8,400
Purchases Returns and Allowances 12,250
Purchases Discounts 7,840
Warehouse Wages Expense 107,200
Warehouse Supplies Expense 4,400
Depreciation Expense—Warehouse Equipment 2,000
Salaries Expense—Sales 150,300
Travel Expense 22,600
Delivery Expense 36,025
Salaries Expense—Office 83,600
Office Supplies Expense 1,080
Insurance Expense 8,475
Utilities Expense 6,600
Telephone Expense 3,140
Payroll Taxes Expense 30,200
Building Repairs Expense 2,300
Property Taxes Expense 15,000
Uncollectible Accounts Expense 2,180
Depreciation Expense—Building 4,200
Depreciation Expense—Office Equipment 1,480
Interest Expense 2,600
Totals $ 1,674,800 $ 1,674,800


Required:

  1. 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.
  2. Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the period.
  3. 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?

Solutions

Expert Solution


Related Solutions

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     ...
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 $ 97,600 Petty Cash Fund 400 Notes Receivable, due 2020 17,000 Accounts Receivable 138,800 Allowance for Doubtful Accounts $ 2,400 Interest Receivable 170 Merchandise Inventory 127,100 Warehouse Supplies 1,900 Office Supplies 560 Prepaid Insurance 3,240 Land 14,600 Building 100,000 Accumulated Depreciation—Building 16,000 Warehouse...
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 $ 97,400 Petty Cash Fund 600 Notes Receivable, due 2020 18,000 Accounts Receivable 138,600 Allowance for Doubtful Accounts $ 2,200 Interest Receivable 180 Merchandise Inventory 126,900 Warehouse Supplies 1,700 Office Supplies 540 Prepaid Insurance 3,040 Land 14,400 Building 99,000 Accumulated Depreciation—Building 15,900 Warehouse...
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...
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                       $ 99,000 Petty Cash Fund                600 Notes Receivable, due 2020      15,000     Accounts Receivable           140,200     Allowance for Doubtful Accounts                    $3,800 Interest Receivable             150     Merchandise Inventory          128,500     Warehouse Supplies           3,300     Office Supplies               700   Prepaid Insurance             4,640     Land                       16,000     Building                    107,000     Accumulated Depreciation—Building                  16,700 Warehouse Equipment       ...
Toot Auto Supply distributes new and used automobile parts to local dealers throughout the Midwest. Toot’s...
Toot Auto Supply distributes new and used automobile parts to local dealers throughout the Midwest. Toot’s credit terms are n/30. As of the end of business on October 31, the following accounts receivable were past due: Account Due Date Amount Avalanche Auto August 15 $12,000 Bales Auto October 4    2,400 Derby Auto Repair June 26    3,900 Lucky's Auto Repair September 10    6,600 Pit Stop Auto September 24    1,100 Reliable Auto Repair July 2    9,750 Trident Auto August 25    1,800 Valley...
Toot Auto Supply distributes new and used automobile parts to local dealers throughout the Midwest. Toot’s...
Toot Auto Supply distributes new and used automobile parts to local dealers throughout the Midwest. Toot’s credit terms are n/30. As of the end of business on October 31, the following accounts receivable were past due: Account Due Date Amount Avalanche Auto August 18 $12,000 Bales Auto October 9 2,400 Derby Auto Repair June 15 3,900 Lucky's Auto Repair September 10 6,600 Pit Stop Auto September 22 1,100 Reliable Auto Repair July 2 9,750 Trident Auto August 21 1,800 Valley...
In the service department of the NAPA (National Auto Parts Association), mechanics requiring parts for auto...
In the service department of the NAPA (National Auto Parts Association), mechanics requiring parts for auto repair or service present their request forms at the parts department counter. The parts clerk fills a request while the mechanic waits. Mechanics arrive in a random (Poisson) fashion at the rate of 60 per hour, and a clerk can fill requests at the rate of 20 per hour (exponential). If the cost for a parts clerk is $20 per hour and the cost...
O’Reilly Auto Parts sells parts to Rick’s Car Repair with a rebate of 2% on purchases...
O’Reilly Auto Parts sells parts to Rick’s Car Repair with a rebate of 2% on purchases up to $60,000 and 3% on purchases above $60,000 if Rick’s purchases for the year exceed $200,000. In the past, Rick’s normally purchases $300,000 in parts during a calendar year. On January 1, 2018, Rick’s purchased $74,000 of parts. The journal entry by O’Reilly to record the sale includes a a. debit to Accounts Receivable for $74,000. b. credit to Sales Revenue for $72,380....
Wendy Reichstein and Sonia Datta operate separate auto repair shops. On January 15, 2021, they decided...
Wendy Reichstein and Sonia Datta operate separate auto repair shops. On January 15, 2021, they decided to combine their businesses, which had been operated as proprietorships, to form Wendy & Sonia Auto Repair, a partnership. Information from their separate balance sheets is presented below: Wendy Auto Repair Sonia Auto Repair Cash $8,300 $1,600 Accounts receivable 7,400 32,100 Allowance for doubtful accounts 800 1,500 Accounts payable 3,900 8,500 Notes payable - 15,000 Salaries payable - 1,100 Equipment 8,700 28,000 Accumulated depreciation...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT