Good to Go Auto Products disti butes automobile parts to service stations and re

Question

Good to Go Auto Products disti butes automobile parts to service stations and repeir shops. The adjusted trial batance data that follows is from the fin's worksheet for the year ended December 31, 2019 97,200 Petty Cash Fund Notss Receivable, due 2020 19,000 s Receivable Allowance for Doubtful ACCDunts $ 2,000 190 126,700 1.500 520 2,840 14,200 98,000 Herchandise Inventory office Supplies Prepaid Insuraace Building Aecumulated Depreciation Building Warehouse Equipment Accumulated Depreciation- 15,800 18,000 8, 600 7.600 office quipment Accumulated Depreciation- Office Equipment Notes Payable, due 2020 Accounts Payable Interest Payable Loans Payable-Long-Tern Hortgage Payable Colin o'Brien, Capital (Jan. 3,000 13,200 55, 100 220 8,000 11,000 22,350 68,850 Colin o'Brien, Draving Income SummarY Sales Sales Returns and Allovances Interest Income Purchases Freight In Purchases Returns and Allowances 129,600 6,600 445,00t0 126 700 074,300 e.000 11,850 7,440 106, 800 4,000 1,600 Harehouse Supplies Expense Depreciation Expensom Warehouse Equipment Salaries Expense-Sales Travel Expense Delivery Expense Salaries Expense-office Office Supplies Expense Insurance Expense utilities Expense Telephone Expense Payroll Taxes Expense Building Repaizs Expense Property Taxes Expense Uncollectible Accounts Expense Depreciation Expense-Building Depreciation Expense-office Equipment 149,900 22,200 3s,625 93,200 1,040 8,075 6,200 3,100 29,900 1,900 14,600 1/280 2,200

Explanation / Answer

GOOD TO GO AUTO PRODUCTS Income Statement Year Ended December 31, 2019 Operating Revenue Sales                                     1,074,300 Less Sales Returns and Allowance                      6,600 Net Sales                                  1,067,700 Cost of Goods Sold Merchandise Inventory, January 1, 2019       129,600 Purchases                                 445,000 Freight In                                       8,000 Delivered Cost of Purchases                    453,000 Less Purchase Returns and Allowance          11,850 Purchase Discounts                           7,440    19,290 Net Delivered Cost of Purchases               433,710 Total Merchandise Available for Sale            563,310 Less Merchandise Inventory, Dec 31, 2019       126,700 Cost of Goods Sold                              436,610 Gross Profit on Sales                               631,090 Operating Expenses Warehouse Expenses Warehouse Wages Expense     106,800 Warehouse Supplies Expense         4,000 Depreciation Expense—Warehouse Equipment      1,600 Total Warehouse Expense 112,400 Selling Expenses Salaries Expense—Sales                   149,900 Travel Expense    22,200 Delivery Expense    35,625 Total Selling Expense                     207,725 General and Administrative Expenses Salaries Expense—Office           83,200 Office Supplies Expense             1,040 Insurance Expense                8,075 Utilities Expense                  6,200 Telephone Expense                3,100 Payroll Taxes Expense            29,800 Building Repairs Expense           1,900 Property Taxes Expense          14,600 Uncollectible Accounts Expense      1,780 Depreciation Expense—Building      3,800 Depreciation Expense—Office Equipment      1,440 Total General and Admin Expenses         154,935 Total Operating Expenses                         475,060 Income from Operations                            156,030 Other Income Interest Income                                400 Other Expense Interest Expense                                 2,200 Net Nonoperating Expenses                             1,800 Net Income for Year                               154,230 Analyze = Total warehouse expense/Total operating expense 112400/475060 23.66% GOOD TO GO AUTO PRODUCTS Statement of Owner’s Equity December 31, 2019 Colin O Srien, Capital, January 1, 2019   322,350 Net Income for Year                     154,230 Less Withdrawals for Year                    68,850 Increase in Capital                          85,380 Colin O Srien, Capital, December 31, 2019 407,730 GOOD TO GO AUTO PRODUCTS Balance Sheet December 31, 2019 Assets Current Assets Cash                                  97,200 Petty Cash Fund                                500 Notes Receivable     19,000 Accounts Receivable                 138,400 Less Allowance for Doubtful Accounts          2,000 136,400 Interest Receivable          190 Merchandise Inventory                126,700 Prepaid Expenses Warehouse Supplies                  1,500 Office Supplies                         520 Prepaid Insurance                      2,840       4,860 Total Current Assets                  384,850 Plant and Equipment Land     14,200 Building     98,000 Less Accumulated Depreciation            15,800     82,200 Warehouse Equipment                        18,000 Less Accumulated Depreciation              8,600       9,400 Office Equipment                          7,600 Less Accumulated Depreciation              3,000       4,600 Total Plant and Equipment             110,400 Total Assets                          495,250 Liabilities and Owner’s Equity Current Liabilities Notes Payable                          13,200 Accounts Payable                       55,100 Interest Payable                              220 Total Current Liabilities                   68,520 Long Term Liabilities Loans Payable—Long-Term                                8,000 Mortgage Payable                                      11,000 Total Long term liabilities     19,000 Owner’s Equity Colin O Srien, Capital                  407,730 Total Liabilities and Owner’s Equity        495,250

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