I am stuck at figuring out what the selling, general, and administrave expenses

Question

I am stuck at figuring out what the selling, general, and administrave expenses of the following problem are so that I can complete the income statement

Multi-step Income Statement and Adjusting Entries The Boston Trading Company, whose accounting year ends on December 31, had the following normal balances in its general ledger at December 31 Cash Accounts Receivable Inventory Prepaid Insurance Office Supplies Furniture & Fixtures Accumulated Depreciation Furn. & Fixtures Delivery Equipment Accumulated Depreciation Delivery Equipment 18,000 Accounts Payable Long-term Notes Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Utilities Expense Sales Salaries Expense Delivery Expense Advertising Expense Rent Expense Office Salaries Expense Income Tax Expense $19,500 84,900 109,500 9,000 6,300 31,500 7,500 126,000 61,500 45,000 112,500 77,100 945,000 606,000 7,200 120,000 16,200 8,400 21,600 87,000 13,500

Explanation / Answer

Sales revenue

Multi step income statement

Sales revenue

        945,000 Cost of goods sold         606,000 Gross profit on sales         339,000 Operating expenses Selling, general and administrative expenses 292,300 Income before taxes           46,700 Less: Income tax expenses           13,500 Net income           33,200 Workings Administrative expenses Office salaries (87000+1200)           88,200 Depreciation expenses (14000+1800)           15,800 Utilities expenses             7,200 rent expenses           21,600 office supplies expenses (6300-1000)             5,300 Insurnace expenses (9000-1200)             7,800 Total administrative expenses         145,900 Selling expenses Sales salaries (120000+1800)         121,800 Delivery expenses           16,200 Advertising expenses             8,400 Total selling expenses               146,400 Total selling and administrative expenses               292,300

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.