Reference no: EM132919234
Question - An alphabetical list of Cullumbers Company adjusted accounts at its fiscal year end, August 31, 2021, follows. All accounts have normal balances.
Accounts payable $ 15,500
Notes payable $ 42,000
Accumulated depreciation-equipment $ 14,000
Prepaid insurance $ 575
Accumulated depreciation-furniture $ 17,500
R. Smistad, capital $ 65,750
Cash $ 16,590
R. Smistad, drawings $77,000
Cost of goods sold $ 272,100
Rent expense $24,900
Depreciation expense $7,000
Salaries expense $ 50,600
Equipment $ 35,000
Salaries payable $ 2,250
Furniture $ 42,000
Sales $ 466,000
Insurance expense $ 3,575
Sales returns and allowances $ 16,300
Interest expense $ 2,150
Supplies $ 950
Interest payable $ 615
Supplies expense $ 6,325
Merchandise inventory $ 71,150
Unearned revenue $ 2,600
Additional information:
1. Of the notes payable, $6,100 becomes due on February 17, 2022. The balance is due in 2023.
2. On July 18, 2021, R. Smistad invested $3,800 cash in the business.
Required -
a) Make a multiple-step income statement.
b) Make a statement of owner's equity.
c) Make a classified balance sheet.
d) Calculate the gross profit margin and profit margin.