Merchandising Income Statement: Perpetual Inventory System

Merchandising Income Statement: Perpetual Inventory System

Subject: Business    / Accounting
Question

Merchandising Income Statement: Perpetual Inventory System

Selected accounts from Murray’s Furniture Store’s adjusted trial balance as of June 30, 2014, the end of the fiscal year, follow.

Murray’s Furniture Store
Partial Adjusted Trial Balance
June 30, 2014
Sales     162,000
Sales Returns and Allowances     2,000
Cost of Goods Sold     61,400
Freight-In     2,300
Store Salaries Expense     32,625
Office Salaries Expense     12,875
Advertising Expense     24,300
Rent Expense     2,400
Insurance Expense     1,200
Utilities Expense     1,560
Store Supplies Expense     2,880
Office Supplies Expense     1,175
Depreciation Expense — Store Equipment     1,050
Depreciation Expense — Office Equipment     800
Income Tax Expense     2,700

Hide

1. Prepare a multistep income statement for Murray’s. Freight-In should be combined with Cost of Goods Sold. Store Salaries Expense, Advertising Expense, Store Supplies Expense, and Depreciation Expense–Store Equipment are selling expenses. The other expenses are general and administrative expenses. The company uses the perpetual inventory system. Show details of net sales and operating expenses.

Murray’s Furniture Store
Income Statement
For the Year Ended June 30, 2014
Net sales:

$

$

Gross margin

$
Operating expenses:
Selling expenses:

$

Total selling expenses

$
General and administrative expenses:

$

Total general and administrative expenses

Total operating expenses

$

$