Southern Cross Corporation supplies you with the following information applicable to the current year, December 31, 2016. The company uses the perpetual inventory system.
|
Delivery expense |
$ 2,000 |
|
Sales |
100,000 |
|
Merchandize inventory (Dec.31) |
15,000 |
|
Cost of goods sold |
70,000 |
|
Office supplies expense |
7,000 |
|
Sales returns and allowance |
10,000 |
|
Salaries expense |
4,000 |
|
Unused supplies |
5,000 |
Required:
- Prepare an income statement. List expenses other than cost of goods sold as other expenses. Assume all accounts have normal balances.
- Prepare all required closing entries. Include general ledger account numbers and a brief description for each entry.
- 1451 reads
