Bridgeport Enterprises reported the following figures from its adjusted trial ba

Question

Bridgeport Enterprises reported the following figures from its adjusted trial balance for its first year of business, which ended on June 30, 2019. Accounts Payable Accounts Receivable Accrued Liabilities $4,800 3,600 1,400 3,800 4,500 7,550 23,500 2,000 8,500 150 2,500 35,000 dministrative Expenses Cash Common Stock Cost of Goods Sold Dividends quipment, net nterest Expense Merchandise Inventory Net Sales Revenue otes Payable, Long- erm Selling Expenses Requirements: a. Prepare a multi-step income statement. b. Prepare the statement of retained earnings. c. Prepare a classified balance sheet. d. Compute the gross profit percentage. Attach File Browse My Computer 1,500 1,700

Explanation / Answer

a) Multistep income statment :

Statement of retained earnings :

Classified balance sheet

Gross profit percentage = (35000-23500)*100/35000 = 32.86%

Net Sales revenue 35000 Less: Cost of goods sold -23500 Gross profit 11500 Less: Operating expense Administrative expense -3800 Selling expense -1700 Total operating expense -5500 Operating income 6000 Less: Interest expense -150 Net income 5850

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