Question about Preparation of Financial Statements

E4-9 Presented below is financial information for two different companies.
Amoruso Tamburri Company Company
Sales $90,000 (d)
Sales returns (a) $ 5,000
Net sales 83,000 95,000
Cost of goods sold 56,000 (e)
Gross profit (b) 38,000
Operating expenses 15,000 (f)
Net income (c) 15,000

Instructions
Determine the missing amounts.

P4-3A Gitler Department Store is located near the Village shopping mall. At the end of the company's year on December 31, 2002, the following accounts appeared in two of its trial balances.
Unadjusted Adjusted
Accounts Payable $ 79,300 $ 79,300
Accounts Receivable 50,300 50,300
Accumulated Depr.-Building 42,100 52,500
Accumulated Depr.-Equipment 29,600 42,900
Building 190,000 190,000
Cash 23,000 23,000
Common Stock 110,000 110,000
Cost of Goods Sold 412,700 412,700
Depr. Expense-Building 10,400
Depr. Expense-Equipment 13,300
Dividends 28,000 28,000
Equipment 110,000 110,000
Insurance Expense 7,200
Interest Expense 3,000 11,000

Unadjusted Adjusted
Interest Payable $ 8,000
Interest Revenue $ 4,000 4,000
Merchandise Inventory 75,000 75,000
Mortgage Payable 80,000 80,000
Office Salaries Expense 32,000 32,000
Prepaid Insurance 9,600 2,400
Property Taxes Expense 4,800
Property Taxes Payable 4,800
Retained Earnings 66,600 66,600
Sales Salaries Expense 76,000 76,000
Sales 628,000 628,000
Sales Commissions Expense 11,000 15,500
Sales Commissions Payable 4,500
Sales Returns and Allowances 8,000 8,000
Utilities Expense 11,000 11,000

Analysis reveals the following additional data.
1. Insurance expense and utilities expense are 60% selling and 40% administrative.
2. $20,000 of the mortgage payable is due for payment next year.
3. Depreciation on the building and property tax expense are administrative expenses; depreciation on the equipment is a selling expense.

Instructions
(a) Prepare a multiple-step income statement, a retained earnings statement, and a classified balance sheet.
(b) Journalize the adjusting entries that were made.
(c) Journalize the closing entries that are necessary.

Attachments

Solution Summary

The solution is in an excel sheet that shows calculations necessay to complete the income statement for Amoruso and Tamburri companies, as well as the preparation of financial statements for Gitler Department Store