Reference no: EM131775042
Question - Rusio Company's adjusted trial balance on August 31, 2009, its fiscal year-end, follows.
Debit Credit
Merchandise inventory............................ $ 43,500
Other (noninventory) assets...................... 174,000
Total liabilities............................................... $ 50,242
Common stock.............................................. 83,481
Retained earnings........................................ 58,555
Dividends...................................................... 8,000
Sales.............................................................. 297,540
Sales discounts ............................................. 4,552
Sales returns and allowances.................... 19,637
Costs of goods sold...................................... 114,571
Sales salaries expense.............................. 40,762
Rent expense - Selling space................... 13,984
Store supplies expense............................. 3,570
Advertising expense.................................. 25,290
Office salaries expense.............................. 37,192
Rent expense - Office space..................... 3,570
Office supplies expense ............................. 1,190
Totals............................................................. $489,818 $489,818
On August 31, 2008, merchandise inventory was $35,104. Supplementary records of merchandising activities for the year ended August 31, 2009, reveal the following itemized costs.
Invoice cost of merchandise purchases.......... $127,890
Purchase discounts received........................... 2,685
Purchase returns and allowances.................... 6,138
Costs of transportation-in................................. 3,900
REQUIRED
1. Compare 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 the 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.