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Posted: November 28th, 2020
ACC 225 Problem 5-4A (P5-4A) BizKid Companyâs adjusted trial balance
Help in ACC 225Problem 5-4A (P5-4A) BizKid Companyâs adjusted trial balance on August 31, 2005, its fiscal year-end, follows:Debit CreditMerchandise inventory . . . . . . . . . . . . $ 31,000Other (noninventory) assets . . . . . . . . 120,400Total liabilities . . . . . . . . . . . . . . . . . . $ 35,000N. Kidman, Capital . . . . . . . . . . . . . . . 101,650N. Kidman, Withdrawals . . . . . . . . . . . 8,000Sales . . . . . . . . . . . . . . . . . . . . . . . . . 212,000Sales discounts . . . . . . . . . . . . . . . . . 3,250Sales returns and allowances . . . . . . . 14,000Cost of goods sold . . . . . . . . . . . . . . 82,600Sales salaries expense . . . . . . . . . . . . 29,000Rent expenseâSelling space . . . . . . . 10,000Store supplies expense . . . . . . . . . . . . 2,500Advertising expense . . . . . . . . . . . . . . 18,000Office salaries expense . . . . . . . . . . . . 26,500Rent expenseâOffice space . . . . . . . 2,600Office supplies expense . . . . . . . . . . . 800Totals . . . . . . . . . . . . . . . . . . . . . . . . $348,650 $348,650On August 31, 2004, merchandise inventory was $25,000. Supplementary records of merchandising activities for the year ended August 31, 2005, reveal the following itemized costs:Invoice cost of merchandise purchases . . . . . . . $91,000Purchase discounts received . . . . . . . . . . . . . . . 1,900Purchase returns and allowances . . . . . . . . . . . . 4,400Costs of transportation-in . . . . . . . . . . . . . . . . 3,900Required1. Compute the companyâs net sales for the year.2. Compute the companyâs total cost of merchandise purchased for the year.3. Prepare a multiple-step income statement that includes separate categories for selling expenses and for general and administrative expenses.4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.
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