E5-20 Journalizing purchase and sales transactions

Learning Objectives 2, 3
Feb. 23 Cash $4,653

Journalize the following transactions for Santa Fe Art Gift Shop. Explanations are not required.

Feb 3 Merchandise Inventory 2,800

Accounts Payable 2,800
Feb 7 Accounts Payable 700
Merchandise Inventory 700
Feb 9 Merchandise Inventory 400
Cash 400
Feb 10 Accounts Receivable 4,800
Sales Revenue 4,800
Feb 12 Accounts Payable 2,800
Cash 2,800
Feb 16 Accounts Receivable 100
Cash 100
Feb 23 Cash 4,800
Accounts Receivable 4,800

Use the following information to answer Exercise E5-24.

The adjusted trial balance of Business Reduction Systems at March 31, 2016, follows:
E5-24 Preparing a multi-step income statement
Learning Objective 5
Gross Profit $137,000

Prepare Business Reduction’s multi-step income statement for the year ended March 31, 2016.
Business Reduction Systems
Multi-Step Income Statement
For the period ended March 31, 2016
Sales Revenue 234,000
Less: Sales Ret. And Allow. 1,500
Less: Sales Discounts 1,900
Net Sales Revenue 230,600
COGS 93,600
Gross Profit 37,000
Operating Expenses:
Selling Expense 27,600
Administrative Expense 14,600
Total Operating Expenses 42,200
Operating Income (5,200)
Other Revenues and (Expenses):
Interest Expense (2,000)
Total Other Revenues and (Expenses) (7,200)
Net Income (12,400)