From the adjusted trial balance for Brookstone Art Supplies, Inc.
Question # 00314550
Posted By:
Updated on: 06/11/2016 12:36 AM Due on: 07/11/2016

From the adjusted trial balance for Brookstone Art Supplies, Inc. given below, prepare a multiple-step income statement in good form.
Brookstone Art Supplies, Inc. Adjusted Trial Balance December 31 | ||
Debit | Credit | |
Cash | $9,400 | |
Accounts receivable | 25,000 | |
Merchandise inventory | 36,000 | |
Office supplies | 900 | |
Store equipment | 75,000 | |
Accumulated depreciation—store equipment | $22,000 | |
Office equipment | 60,000 | |
Accumulated depreciation—office equipment | 15,000 | |
Accounts payable | 42,000 | |
Notes payable | 10,000 | |
Common stock | 1,000 | |
Retained earnings | 109,700 | |
Dividends | 48,000 | |
Sales | 325,000 | |
Sales discounts | 6,000 | |
Sales returns and allowances | 16,500 | |
Cost of goods sold | 195,000 | |
Selling expenses | 32,500 | |
General and administrative expenses | 19,800 | |
Interest expense | 600 | |
Totals | $524,700 | $524,700 |

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Rating:
5/
Solution: From the adjusted trial balance for Brookstone Art Supplies, Inc.