RH Merchandisers

Income Statement
For the month ended January 31 2019

Sales 885,178.57
Less: Sales Returns and Allowances 11,160.71
Sales Discount 3,477.50 14,638.21
Net Sales 870,540.36
Less: Cost of Goods Sold
Purchases 710,892.85
Add: Freight In 3,700
Total Purchases 714,592.85
Less: Purchase Discounts 6160.71 708,432.14
Cost of Goods Available for Sale 708,432.14
Less: Merchandise Inventory, End 193,840 514,592.14
355,948.22
Add: Other Income 15,000
Gross Income 370,948.22
Less: Operating Expenses
Salaries and Wages 65,500
Insurance Expense 2,708.33
Store Supplies Used 20,200
Doubtful Accounts 4,173
Postage and Communication 2,550
Freight Out 3,900
Advertising Expense 5,000
Depreciation Expense 7,291.67
Utilities Expense 8,900
Repairs and Maintenance 5,500
Taxes and Licenses 9,500
Miscellaneous Expense 2,350 137,573
Net Income 233,375.22
 RH Merchandisers
Statement of Changes in equity
January 31 2019

Hernandez Capital, Beg 1,455,000

Add: Net Income 233,375.22
Total: 1,688,375.22
Less: Hernandez, Drawing 150,000
Hernandez Capital, End 1,538,375.22
 RH Merchandisers
Balance Sheet
As of January 31 2019

ASSET
Current Assets:
Cash In Bank 377,145.20
Accounts Receivable 83,460
Less: Allowance for Doubtful Accounts 4,173 79,287
Merchandise Inventory, End 193,840
Unused Store Supplies 3,300
Prepaid Insurance 62,291.67
Total Current Asset: 715,863.87

Non-Current Assets:
Store Building 460,000
Less: Accumulated Depreciation – Store Building 1,916.67 458,083.33
Equipment 450,000
Less: Accumulated Depreciation – Equipment 3,750 446,250
Furniture and Fixtures 195,000
Less: Accumulated Depreciation – Furniture and Fixtures 1,625 193,375
Total Property and Equipment 1,097,708.33
Total Asset: 1,813,572.2

Liabilities and Owner’s Equity

LIABILITIES
Current Liabilities
Accounts Payable 245,300
VAT Payable 19,896.98
Accrued Repairs and Maintenance 5,500
Accrued Taxes and Licenses 4,500
Total Current Liabilities 275,196.98

OWNER’S EQUITY
Hernandez Capital 1,538,375.22

Total Liabilities and Owner’s Equity 1,813,572.2