Instructions
1. Prepare a single-step income statement in the format shown in Exhibit 12.
2. Prepare closing entries as of May 31, 2019.
Answer:
1.
Sales$11,343,000
Expenses:
Cost of merchandise sold $7,850,000
Selling expenses1,644,000
Administrative expenses884,600
Interest expense21,000
Total expenses10,399,600
Net income$ 943,400
2. 2019
May 31 Sales11,343,000
Cost of Merchandise Sold7,850,000
Sales Salaries Expense916,000
Advertising Expense550,000
Depreciation Expense—Store Equipment 140,000
Miscellaneous Selling Expense38,000
Office Salaries Expense650,000
Rent Expense94,000
Depreciation Expense—Office Equipment 50,000
Insurance Expense48,000
Office Supplies Expense28,100
Miscellaneous Administrative Expense 14,500
Interest Expense21,000
Kristina Marble, Capital943,400
31 Kristina Marble, Capital 100,000
Kristina Marble, Drawing100,000