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Connect Connect C College Accounting Chapte ? ??? ?newconnect mheducation.com/flow/connect.html Week 5 Assignment Help Save& Submit Good to Go Auto Products distributes automoblle ports to service stations and repair shops. The adjusted trial balance dots that follows is from the firm's worksheet for the year ended December 31. 2019 Debit Credit Cash Petty Cash Fund Notes Receivable, due 2820 Accounts Receivable Allowance for Doubtful Accounts Interest Receivable Nerchandise Inventory warehouse Supplies Office Supplies Prepaid Insurance Land Building Accunulated Depreciation-Building Warehouse Equipment Accunulated Depreciation-Narehouse Equipment Office Equipnent Accunulated Depreciation-office Equipment Notes Payable, due 2828 Accounts Payable Interest Payable Loans Payablc-Long-Tern Nortgage Payable colin o'Brien, capital (an 1) Colin o'Brien, Drawing Incone Sumnary sales Sales Returns and Allowances Interest IncoC $ 98,409 12,888 139,609 5 3,206 127,90a 2,709 4,848 15,408 194,003 eference 16,480 19,288 9,28e 8,3ea 14,488 56,3ee 14,808 17,e8e 321,828 78,850 130,80 127,900 1,898 , ??? 7,908 457,eea Freight In Purchases Returns and Allowances Purchases Discounts Warehouse Wages Expense warehouse Supplies Expense Depreciation Expense-warehouse Equipnent 13,850 8,640 18,eea 5, 288 2,809 K Prev 2of2 Next O Type here to search 3/24/2018

Explanation / Answer

Classified Income Statement

For the year ended December 31, 2019

Sales revenue;

Sales

$1098300

Less: Sales Return & Allowances

($7800)

Net sales revenue

$1090500

Less: Cost of Goods Sold;

Merchandise Inventory, Beginning

$130800

Purchases

$457000

Less: Purchases Discount

($8640)

Less: Purchases Returns & Allowances

($13050)

Net Purchases

$435310

Goods Available for Sale

$566110

Add: Freight In

$9200

Net Cost of Goods Purchased

$575310

Less: Merchandise Inventory, Ending

($127900)

Cost of Goods Sold

($447410)

Gross Margin

$643090

Operating expenses;

Warehouse Expenses;

Warehouse Wages Expenses

$108000

Warehouse Supplies Expenses

$5200

Depreciation Exp. - Warehouse Equipment

$2800

Total warehouse Expenses

($116000)

Selling Expenses;

Salaries Expenses – Sales

$151100

Travel & Entertainment Exp.

$23400

Delivery Wages Expenses

$36825

Total Selling Expenses

($211325)

General & Administrative Expenses;

Salaries Expenses – Office

$84400

Office Supplies Expenses

$1160

Insurance Expenses

$9275

Utilities Expenses

$7400

Telephone Expenses

$3220

Payroll Taxes Expenses

$31000

Building repairing expense

$3100

Property Taxes Expenses

$15800

Uncollectible Account Expenses

$2980

Depreciation Expense – Building

$5000

Depreciation Expense - Office Equipment

$1560

Total General & Administrative Expenses

($164895)

Total operating expenses;

($492220)

Net Operating Income

$150870

Other Income & Losses;

Interest Revenue

$520

Interest Expense

($3400)

Net other income & Losses

($2880)

Net Income (Loss)

$147990

Owners' Equity Statement

As on Dec. 31, 2019

Colin O’ Brien, Capital

$321020

Add: Net income (Loss)

$147990

Less: Colin O’ Brien, Drawings

($70050)

Ending balance

$398960

Classified Balance Sheey

As on December 31, 2019

Current assets;

Cash

$98400

Petty Cash Fund

$600

Notes Receivable

$12000

Accounts Receivable

$139600

Less: Allowance for Doubtful Accounts

(3200)

Net Accounts Receivable

$136400

Interest receivable

$120

Merchandise Inventory

$127900

Warehouse Supplies

$2700

Office Supplies

$640

Prepaid Insurance

$4040

Total Current Assets

$382800

Property, Plant & Equipment

Land

$15400

Building

$104000

Less: Accumulated Depreciation – Building

($16400)

$87600

Warehouse Equipment

$19200

Less: Accumulated Depreciation - Warehouse Equip.

($9200)

$10000

Office Equipment

$8800

Less: Accumulated Depreciation - Office Equip.

($3600)

$5200

Total Property, Plant & Equipment

$118200

Total Assets

$501000

Liabilities & Owners' Equity;

Liabilities;

Current liabilities;

Notes Payable

$14400

Accounts Payable

$56300

Interest Payable

$340

Total current liabilities

$71040

Non-current liabilities;

Mortgage Payable

$17000

Loans Payable - Long Term

$14000

Total Non-current liabilities

$31000

Total Liabilities

$102040

Owners' Equities (Balance of Owners’ equity)

$398960

Total Laibilities & Owners' Equity

$501000

Total percentage attributable to warehouse expense = 18.04%

Explanation;

Warehousing expenses = $116000

Total operating expenses = $643090

Percentage of warehousing expenses ($116000 / $643090) = 18.04%

Classified Income Statement

For the year ended December 31, 2019

Sales revenue;

Sales

$1098300

Less: Sales Return & Allowances

($7800)

Net sales revenue

$1090500

Less: Cost of Goods Sold;

Merchandise Inventory, Beginning

$130800

Purchases

$457000

Less: Purchases Discount

($8640)

Less: Purchases Returns & Allowances

($13050)

Net Purchases

$435310

Goods Available for Sale

$566110

Add: Freight In

$9200

Net Cost of Goods Purchased

$575310

Less: Merchandise Inventory, Ending

($127900)

Cost of Goods Sold

($447410)

Gross Margin

$643090

Operating expenses;

Warehouse Expenses;

Warehouse Wages Expenses

$108000

Warehouse Supplies Expenses

$5200

Depreciation Exp. - Warehouse Equipment

$2800

Total warehouse Expenses

($116000)

Selling Expenses;

Salaries Expenses – Sales

$151100

Travel & Entertainment Exp.

$23400

Delivery Wages Expenses

$36825

Total Selling Expenses

($211325)

General & Administrative Expenses;

Salaries Expenses – Office

$84400

Office Supplies Expenses

$1160

Insurance Expenses

$9275

Utilities Expenses

$7400

Telephone Expenses

$3220

Payroll Taxes Expenses

$31000

Building repairing expense

$3100

Property Taxes Expenses

$15800

Uncollectible Account Expenses

$2980

Depreciation Expense – Building

$5000

Depreciation Expense - Office Equipment

$1560

Total General & Administrative Expenses

($164895)

Total operating expenses;

($492220)

Net Operating Income

$150870

Other Income & Losses;

Interest Revenue

$520

Interest Expense

($3400)

Net other income & Losses

($2880)

Net Income (Loss)

$147990

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