Reference no: EM13905297
Barkley Company's adjusted trial balance on March 31, 2013, its fiscal year end, follows.
.png)
On March 31, 2012, merchandise inventory was $ 37,500. Supplementary records of merchandising activities for the year ended March 31, 2013, reveal the following itemized costs.
Invoice cost of merchandise purchases . . . . . . . . $ 138,500
Purchase discounts received . . . . . . . . . . . . . . . . . 2,950
Purchase returns and allowances . . . . . . . . . . . . . 6,700
Costs of transportation in . . . . . . . . . . . . . . . . . . 5,750
Required:
1. Calculate the company's net sales for the year.
2. Calculate 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 administrativeexpenses.