From the adjusted trial balance for Brookstone Art Supplies, Inc.
Question # 00314550
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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.