60.1K

Verified Solution

Link Copied!

Good to Go Auto Products distributes automobile parts to service stations and repair shops. The adjusted trial balance data that follows is from the firms worksheet for the year ended December 31, 2019.

Accounts	Debit			Credit
Cash	$	97,400
Petty Cash Fund		600
Notes Receivable, due 2020		18,000
Accounts Receivable		138,600
Allowance for Doubtful Accounts				$	2,200
Interest Receivable		180
Merchandise Inventory		126,900
Warehouse Supplies		1,700
Office Supplies		540
Prepaid Insurance		3,040
Land		14,400
Building		99,000
Accumulated DepreciationBuilding					15,900
Warehouse Equipment		18,200
Accumulated DepreciationWarehouse Equipment					8,700
Office Equipment		7,800
Accumulated DepreciationOffice Equipment					3,100
Notes Payable, due 2020					13,400
Accounts Payable					55,300
Interest Payable					240
Loans PayableLong-Term					9,000
Mortgage Payable					12,000
Colin OBrien, Capital (Jan. 1)					322,380
Colin OBrien, Drawing		69,050
Income Summary		129,800			126,900
Sales					1,078,300
Sales Returns and Allowances		6,800
Interest Income					420
Purchases		447,000
Freight In		8,200
Purchases Returns and Allowances					12,050
Purchases Discounts					7,640
Warehouse Wages Expense		107,000
Warehouse Supplies Expense		4,200
Depreciation ExpenseWarehouse Equipment		1,800
Salaries ExpenseSales		150,100
Travel Expense		22,400
Delivery Expense		35,825
Salaries ExpenseOffice		83,400
Office Supplies Expense		1,060
Insurance Expense		8,275
Utilities Expense		6,400
Telephone Expense		3,120
Payroll Taxes Expense		30,000
Building Repairs Expense		2,100
Property Taxes Expense		14,800
Uncollectible Accounts Expense		1,980
Depreciation ExpenseBuilding		4,000
Depreciation ExpenseOffice Equipment		1,460
Interest Expense		2,400
Totals	$	1,667,530		$	1,667,530

Required:

1. Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.

2. Prepare a statement of owners equity for the year ended December 31, 2019. No additional investments were made during the period.

3. Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than one year.

Analyze: What percentage of total operating expenses is attributable to warehouse expenses?

Complete this question by entering your answers in the tabs below.

Required 1

Required 2

Required 3

Analyze

Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.

	GOOD TO GO AUTO PRODUCTS Income Statement Operating revenue Net sales Cost of goods sold Merchandise inventory, January 1, 2019 Delivered cost of purchases $0 0 Net delivered cost of purchases 0 Total merchandise available for sale $0 0 Gross profit on sales $0 Operating expenses Warehouse expenses Total warehouse expenses $0 Selling expenses Total selling expenses $0 General and administrative expenses Total general and administrative expenses $0 Total operating expenses 0 Income from operations $0 Other income Other expenses Net nonoperating expenses $0 Net income for year $0

Prepare a statement of owners equity for the year ended December 31, 2019. No additional investments were made during the period.

	GOOD TO GO AUTO PRODUCTS Statement of Owner's Equity 0 $0

Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than one year.

	GOOD TO GO AUTO PRODUCTS Balance Sheet Assets Current assets Prepaid expenses 0 Total current assets $0 Plant and equipment Building Warehouse equipment Office equipment Total plant and eqipment 0 Total assets $0 Liability and Owners Equity Current liabilities Total current liabilities $0 Long-term liabilities Total long-term liabilities 0 Total liabilities $0 Owners equity Total liabilities and owner's equity
What percentage of total operating expenses is attributable to warehouse expenses? (Round your answer to 2 decimal places.) The percentage attributable to warehouse expense is %

Answer & Explanation Solved by verified expert

See Answer