Good to Go Auto Products distributes automobile parts to service stations and re

Question

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 $97,100 600 19,500 138,300 Cash Petty Cash Fund Notes Receivable, due 2020 Accounts Receivable Allowance for Doubtful Accounts Interest Receivable Merchandise Inventory Warehouse Supplies Office Supplies Prepaid Insurance Land Building Accumulated Depreciation-Building Warehouse Equipment Accumulated Depreciation-Warehouse Equipment Office Equipment Accumulated Depreciation-Office Equipment Notes Payable, due 2020 Accounts Payable Interest Payable Loans Payable-Long-Term Mortgage Payable Colin o'Brien, Capital (Jan. 1) Colin o'Brien, Drawing Income Summary Sales Sales Returns and Allowances Interest Income Purchases Freight In Purchases Returns and Allowances Purchases Discounts Warehouse Wages Expense Warehouse Supplies Expense Depreciation Expense-Warehouse Equipment Salaries Expense-Sales Travel Expense Delivery Expense 1,900 195 126,600 1,400 510 2,740 14,100 97,500 15,750 17,900 8,550 7,500 2,950 13,100 55,000 210 7,500 10,500 322,48!5 68,750 129,500 6,500 444,000 126,600 1,072,300 390 7,900 11,750 7,340 106,700 3,900 1,500 149,800 22,100 35,525

Explanation / Answer

Good To Go Auto Products Income Statement Operating Revenue 1072300 Less: Returns -6500 Net Sales 1065800 Cost of Goods Sold Merchandise Inventory January 1 2019 Delivered cost of purchases 444000 Freight In 7900 Less: Returns -11750 Less: Discounts -7340 Net Delivered cost of purchases 432810 Total merchandise available for sale -432810 Gross Profit on sales 632990 Operating Expenses Warehouse Expenses Wages 106700 Supplies Expense 3900 Depreciation 1500 Total warehouse expenses 112100 Selling Expenses Salary Expense 149800 Travel Expense 22100 Delivery Expense 35525 Total Selling Expenses 207425 General and administrative expenses Salaries Expense 83100 Office Supplies Expense 1030 Insurance Expense 7975 Utilities Expense 6100 Telephone Expense 3090 Payroll Taxes 29700 Building Repairs 1800 Property Taxes Expense 14500 Uncollectible accounts expense 1680 Depreciation Expense - Building 3700 Depreciation Expense - Office Equipment 1430 Interest Expense 2100 Total General and administrative expenses 156205 Total Operating expenses 475730 Income From Operations 157260 Other Income Interest Income 390 Other Expenses 0 Net Nonoperating expenses -390 Net Income for Year 157650 Good to Go Auto Products Statement of Owner's Equity Colin O'Brien Capital 322485 Less : Drawings -68750 Net Income for year 157650 411385 Good to Go Auto products Balance Sheet Assets Current assets Cash 97100 Petty Cash Fund 600 Accounts Receivable 138300 Less : Allowance for doubtful accounts -1900 Net Accounts receivable 136400 Merchandise Inventory 126600 Warehouse Supplies 1400 Prepaid expenses 2740 Notes Receivable, due 2020 19500 Interest Receivable 195 Office Supplies 510 Total Current assets 385045 Land 14100 14100 Plant and Equipment Building 97500 Less : Accumulated depreciation -15750 81750 warehouse equipment 17900 Less : Accumulated depreciation -8550 9350 Office Equipment 7500 Less : Accumulated depreciation -2950 4550 Total plant and equipment 95650 Total assets 497695 Liability and Owner's Equity Current Liabilities Accounts payable 55000 Interest payable 210 Total current liabilities 55210 55210 Long term liabilities Notes Payable, due 2020 13100 Loans payable- Long Term 7500 Mortgage payable 10500 Total Long-term liabilities 31100 31100 Total Liabilities 86310 Owner's Equity 411385 Total liabilities and owner's Equity 497695

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