Based on the following, prepare a multi-step income statement Accounts payable $
ID: 2491436 • Letter: B
Question
Based on the following, prepare a multi-step income statement Accounts payable $12,569 Sales $365,258 Merch. Inventory $32,256 Sales Expenses $79,245 Other Income: Rent Revenue $2,400 Prepaid Expense $5,663 Sales Returns & Allowances $4,364 Administrative Expenses $62,542 Wages Payable $3,600 COGS $199,241 Sales Discounts $2,247 Sales Tax Payable $10,471 Drawing $15,000 Based on the information in exercise 3, prepare closing entries. Determine the amount to be paid within the discount period and all returns are made before payment was made.Explanation / Answer
ABC Co. Income Statement Revenue Sales 365,258 Cost of Goods Sold 199,241 Selling Expenses Sales Expenses 79,245 Sales return and allowance 4,364 Sales Discount 2,247 85,856 General and Administration Expenses Administrative Expenses 62,542 62,542 Total Operating Expenses 347,639 Income from Operation 17,619 Other Other Income rent revenue 2,400 Net Income 20,019 Debit Credit 1 Sales Revenue A/C Dr. 365258 Rent Revenue A/C dr. 2400 To Income Summary 367658 2 Income Summary A/C dr. 347,639 To COGS 199,241 To Sales Expenses 79,245 To Sales return and allowance 4,364 To Sales Discount 2,247 To Administrative Expenses 62,542 3 Income Summary A/C dr. 20,019 To Capital 20,019 4 Capital A/C dr. 15,000 To Drawing A/C 15,000 5 Merchandise Freight paid by supplier Terms Return Amount Due 23560 250 2/10 n45 FOB Destination 500 22598.8 5300 80 1/10 n30 FOB Shipping Point 0 5327 11000 150 n30 FOB Shipping Point 1000 10150 30000 350 2/10 n30 FOB Destination 4000 25480
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