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  3. insurance expense $10,000 sales returns and all

Insurance expense $10,000 Sales returns and allowances 22,400 Bad debt expense 6,000 Accounts payable 81,000 Accounts receivable 108,590 Allowance for doubtful accounts 8,500 Accumulated depreciation – equipment 27,740 Depreciation expense 1,200 Interest revenue 2,100 Cash 80,970 Common stock (10,000 shares outstanding) 100,000 Cost...

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Accounting

Insurance expense$10,000
Salesreturns and allowances22,400
Bad debtexpense6,000
Accountspayable81,000
Accountsreceivable108,590
Allowance for doubtful accounts8,500
Accumulated depreciation – equipment27,740
Depreciation expense1,200
Interestrevenue2,100
Cash80,970
Commonstock (10,000 shares outstanding)100,000
Cost ofgoods sold598,550
Dividends declared18,000
Equipment139,450
Generalexpenses114,250
Dividends payable2,000
Salesdiscounts23,000
Interestexpense5,600
Paid-incapital in excess of par110,000
Marketable Securities12,000
Merchandise inventory154,250
Prepaidinsurance11,225
Salariesexpense42,100
Retained earnings?
DividendRevenue10,000
SalariesPayable12,350
Sales983,900
Sellingexpenses139,210

The selling expenses and general expense categories above are acombination of numerous accounts not needed to be listed separately(they are mainly composed of senior executives’ salaries and othercompensation items). If you do not know if an account is selling orgeneral/admin. then split the dollar amount 50/50 between the 2categories. This only matters in the preparation of the multi-stepincome statement.

Needed

A Single Step income statement

Multiple-step income statement

Statement of retained earnings

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