Acc225 Fundamental Accounting Principles: P5-4A BizKid Company’s adjusted trial balance

Acc225 Fundamental Accounting Principles Problem 5-4A BizKid Company’s adjusted trial balance on August 31, 2005, its fiscal year-end, follows: Debit Credit Merchandise inventory 31,000 Other (noninventory) assets 120,400 Total liabilities 35,000 N. Kidman, Capital 101,650 N. Kidman, Withdrawals 8,000 Sales 212,000 S ales discounts 3,250 Sales returns and allowance 14,000 Cost of goods sold 82,600 Sales salaries expense 29,000 Rent expense—Selling space 10,000 Store supplies expense 2,500 Advertising expense 18,000 Office salaries expense 26,500 Rent expense—Office space 2,600 Office supplies expense 800 Totals 348,650 348,650 On 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 91,000 Purchase discounts received 1,900 Purchase returns and allowances 4,400 Costs of transportation-in 3,900 Required 1. Compute the company’s net sales for the year. 2. Compute the company’s 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.