Net sales for the year

Question

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Answer 1

Question

Chapter 5, Problem 3BPSB

Requirement 1

To determine

To calculate:

Net sales for the year

Requirement 1

Expert Solution

Answer to Problem 3BPSB

Solution:

The net sales for the year = $ 306,775.

Explanation of Solution

The net sales are calculated as −
The information given related to the sales are −

Sales = $ 332,650
Sales Discounts = $ 5,875
Sales returns and allowances = $ 20,000

Net Sales = Sales − Sales Discounts − Sales returns and allowancesNet Sales = $ 332,650 – $ 5,875 – $ 20,000Net Sales = $ 306,775

The net sales for the year = $ 306,775.

Conclusion

Thus, the net sales for the year are calculated.

Requirement 2

To determine

To calculate:

Total cost of merchandise purchased during the year

Requirement 2

Expert Solution

Answer to Problem 3BPSB

Solution:

The total cost of merchandise purchased during the year = $ 134,600

Explanation of Solution

The total cost of merchandise purchases during the year will be computed as −
The information given relate to the cost of merchandise −

Purchase cost of merchandise = $ 138,500
Purchase discount received = $ 2,950
Purchases returns and allowances = $ 6,700
Costs of transportation-in = $ 5,750

Total cost of merchandise = Purchase cost of merchandise − Purchase discount received −Purchases returns and allowances + Costs of transportation−inTotal cost of merchandise = $ 138,500 − $ 2,950 − $ 6,700 + $ 5,750Total cost of merchandise = $ 134,600

The total cost of merchandise = $ 134,600.

Conclusion

Thus, the total cost of merchandise purchased during the year has been calculated.

Requirement 3

To determine

To prepare:

Multiple-step income statement for Barkley’s Company

Requirement 3

Expert Solution

Answer to Problem 3BPSB

Solution:

The multiple-step income statement for Barkley’s Company −

Barkley's Company
Multiple-Step Income Statement
Net Sales		306775
Cost of Goods sold		1,15,600
Gross Margin		1,91,175
Less: Selling and administration Expenses
Sales salaries expense	44,500
Rent Expense - Selling space	16,000
Store Supplies expense	3,850
Advertising expense	26,000
Office Salaries expense	40,750
Rent Expense - Office space	3,800
Office supplies expense	1,100

Total selling and administration expenses		1,36,000

Net Operating Income		55,175

The net operating income = $ 55,175.

Explanation of Solution

The steps involved in the preparation of multiple-step income statement can be described as −
The information given related to the income statement −

Net Sales = $ 306,775
Cost of Goods sold = $ 115,600
Sales salaries expense = $ 44,500
Rent Expense - Selling space = $ 16,000
Store Supplies expense =$ 3,850
Advertising expense = $ 26,000
Office Salaries expense = $ 40,750
Rent Expense - Office space = $ 3,800
Office supplies expense = $ 1,100

The gross profit is −

Gross profit = Net sales – Cost of Goods soldGross profit = $ 306,775 − $ 115,600Gross profit = 191,175

The total selling administrative expenses −

Total selling administrative expenses = Sales salaries expense + Rent Expense − Selling space +Store Supplies expense + Advertising expense + Office Salaries expense + Rent Expense − Office space + Office supplies expense Total selling administrative expenses = $ 44,500 + $ 16,000 + $ 3,850 + $ 26,000 + $ 40,750 + $ 3,800 + $ 1,100Total selling administrative expenses = $ 136,000

The net operating income will be −

Net Operating income = Gross profit − Total selling administrative expenses Net Operating income = $ 191,175 − $ 136,000Net Operating income = $ 55,175

The net operating income = $ 55,175.

Conclusion

Thus, the multiple-step income statement has been prepared.

Requirement 4

To determine

To prepare:

Single-step income statement

Requirement 4

Expert Solution

Answer to Problem 3BPSB

Solution:

Barkley's Company
Single-Step Income Statement
Net Sales		306,775

Less: Total expenses
Cost of Goods sold	115,600
Sales salaries expense	44500
Rent Expense - Selling space	16000
Store Supplies expense	3850
Advertising expense	26000
Office Salaries expense	40750
Rent Expense - Office space	3800
Office supplies expense	1100

Total expenses		251,600

Net Income		55,175

Explanation of Solution

Explanation:

The steps involved in the preparation of single-step income statement can be described as −
The information given related to the income statement −

Net Sales = $ 306,775
Cost of Goods sold = $ 115,600
Sales salaries expense = $ 44,500
Rent Expense - Selling space = $ 16,000
Store Supplies expense =$ 3,850
Advertising expense = $ 26,000
Office Salaries expense = $ 40,750
Rent Expense - Office space = $ 3,800
Office supplies expense = $ 1,100

The total expenses −

Total expenses = Cost of goods sold +Sales salaries expense + Rent Expense − Selling space +Store Supplies expense + Advertising expense +Office Salaries expense + Rent Expense − Office space + Office supplies expense Total expenses =$ 115,600 + $ 44,500 + $ 16,000 + $ 3,850 + $ 26,000 + $ 40,750 + $ 3,800 + $ 1,100Total expenses =$ 251,600

The net income will be −

Net income = Net Sales − Total expenses Net income = $ 306,775 − $ 251,600Net income = $ 55,175

The net income = $ 55,175.

Conclusion

Thus, the single-step income statement has been prepared

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Answer 2

Question

Chapter 5, Problem 3BPSB

Requirement 1

To determine

To calculate:

Net sales for the year

Requirement 1

Expert Solution

Answer to Problem 3BPSB

Solution:

The net sales for the year = $ 306,775.

Explanation of Solution

The net sales are calculated as −
The information given related to the sales are −

Sales = $ 332,650
Sales Discounts = $ 5,875
Sales returns and allowances = $ 20,000

Net Sales = Sales − Sales Discounts − Sales returns and allowancesNet Sales = $ 332,650 – $ 5,875 – $ 20,000Net Sales = $ 306,775

The net sales for the year = $ 306,775.

Conclusion

Thus, the net sales for the year are calculated.

Requirement 2

To determine

To calculate:

Total cost of merchandise purchased during the year

Requirement 2

Expert Solution

Answer to Problem 3BPSB

Solution:

The total cost of merchandise purchased during the year = $ 134,600

Explanation of Solution

The total cost of merchandise purchases during the year will be computed as −
The information given relate to the cost of merchandise −

Purchase cost of merchandise = $ 138,500
Purchase discount received = $ 2,950
Purchases returns and allowances = $ 6,700
Costs of transportation-in = $ 5,750

Total cost of merchandise = Purchase cost of merchandise − Purchase discount received −Purchases returns and allowances + Costs of transportation−inTotal cost of merchandise = $ 138,500 − $ 2,950 − $ 6,700 + $ 5,750Total cost of merchandise = $ 134,600

The total cost of merchandise = $ 134,600.

Conclusion

Thus, the total cost of merchandise purchased during the year has been calculated.

Requirement 3

To determine

To prepare:

Multiple-step income statement for Barkley’s Company

Requirement 3

Expert Solution

Answer to Problem 3BPSB

Solution:

The multiple-step income statement for Barkley’s Company −

Barkley's Company
Multiple-Step Income Statement
Net Sales		306775
Cost of Goods sold		1,15,600
Gross Margin		1,91,175
Less: Selling and administration Expenses
Sales salaries expense	44,500
Rent Expense - Selling space	16,000
Store Supplies expense	3,850
Advertising expense	26,000
Office Salaries expense	40,750
Rent Expense - Office space	3,800
Office supplies expense	1,100

Total selling and administration expenses		1,36,000

Net Operating Income		55,175

The net operating income = $ 55,175.

Explanation of Solution

The steps involved in the preparation of multiple-step income statement can be described as −
The information given related to the income statement −

Net Sales = $ 306,775
Cost of Goods sold = $ 115,600
Sales salaries expense = $ 44,500
Rent Expense - Selling space = $ 16,000
Store Supplies expense =$ 3,850
Advertising expense = $ 26,000
Office Salaries expense = $ 40,750
Rent Expense - Office space = $ 3,800
Office supplies expense = $ 1,100

The gross profit is −

Gross profit = Net sales – Cost of Goods soldGross profit = $ 306,775 − $ 115,600Gross profit = 191,175

The total selling administrative expenses −

Total selling administrative expenses = Sales salaries expense + Rent Expense − Selling space +Store Supplies expense + Advertising expense + Office Salaries expense + Rent Expense − Office space + Office supplies expense Total selling administrative expenses = $ 44,500 + $ 16,000 + $ 3,850 + $ 26,000 + $ 40,750 + $ 3,800 + $ 1,100Total selling administrative expenses = $ 136,000

The net operating income will be −

Net Operating income = Gross profit − Total selling administrative expenses Net Operating income = $ 191,175 − $ 136,000Net Operating income = $ 55,175

The net operating income = $ 55,175.

Conclusion

Thus, the multiple-step income statement has been prepared.

Requirement 4

To determine

To prepare:

Single-step income statement

Requirement 4

Expert Solution

Answer to Problem 3BPSB

Solution:

Barkley's Company
Single-Step Income Statement
Net Sales		306,775

Less: Total expenses
Cost of Goods sold	115,600
Sales salaries expense	44500
Rent Expense - Selling space	16000
Store Supplies expense	3850
Advertising expense	26000
Office Salaries expense	40750
Rent Expense - Office space	3800
Office supplies expense	1100

Total expenses		251,600

Net Income		55,175

Explanation of Solution

Explanation:

The steps involved in the preparation of single-step income statement can be described as −
The information given related to the income statement −

Net Sales = $ 306,775
Cost of Goods sold = $ 115,600
Sales salaries expense = $ 44,500
Rent Expense - Selling space = $ 16,000
Store Supplies expense =$ 3,850
Advertising expense = $ 26,000
Office Salaries expense = $ 40,750
Rent Expense - Office space = $ 3,800
Office supplies expense = $ 1,100

The total expenses −

Total expenses = Cost of goods sold +Sales salaries expense + Rent Expense − Selling space +Store Supplies expense + Advertising expense +Office Salaries expense + Rent Expense − Office space + Office supplies expense Total expenses =$ 115,600 + $ 44,500 + $ 16,000 + $ 3,850 + $ 26,000 + $ 40,750 + $ 3,800 + $ 1,100Total expenses =$ 251,600

The net income will be −

Net income = Net Sales − Total expenses Net income = $ 306,775 − $ 251,600Net income = $ 55,175

The net income = $ 55,175.

Conclusion

Thus, the single-step income statement has been prepared

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Answer 3

Question

Chapter 5, Problem 3BPSB

Requirement 1

To determine

To calculate:

Net sales for the year

Requirement 1

Expert Solution

Answer to Problem 3BPSB

Solution:

The net sales for the year = $ 306,775.

Explanation of Solution

The net sales are calculated as −
The information given related to the sales are −

Sales = $ 332,650
Sales Discounts = $ 5,875
Sales returns and allowances = $ 20,000

Net Sales = Sales − Sales Discounts − Sales returns and allowancesNet Sales = $ 332,650 – $ 5,875 – $ 20,000Net Sales = $ 306,775

The net sales for the year = $ 306,775.

Conclusion

Thus, the net sales for the year are calculated.

Requirement 2

To determine

To calculate:

Total cost of merchandise purchased during the year

Requirement 2

Expert Solution

Answer to Problem 3BPSB

Solution:

The total cost of merchandise purchased during the year = $ 134,600

Explanation of Solution

The total cost of merchandise purchases during the year will be computed as −
The information given relate to the cost of merchandise −

Purchase cost of merchandise = $ 138,500
Purchase discount received = $ 2,950
Purchases returns and allowances = $ 6,700
Costs of transportation-in = $ 5,750

Total cost of merchandise = Purchase cost of merchandise − Purchase discount received −Purchases returns and allowances + Costs of transportation−inTotal cost of merchandise = $ 138,500 − $ 2,950 − $ 6,700 + $ 5,750Total cost of merchandise = $ 134,600

The total cost of merchandise = $ 134,600.

Conclusion

Thus, the total cost of merchandise purchased during the year has been calculated.

Requirement 3

To determine

To prepare:

Multiple-step income statement for Barkley’s Company

Requirement 3

Expert Solution

Answer to Problem 3BPSB

Solution:

The multiple-step income statement for Barkley’s Company −

Barkley's Company
Multiple-Step Income Statement
Net Sales		306775
Cost of Goods sold		1,15,600
Gross Margin		1,91,175
Less: Selling and administration Expenses
Sales salaries expense	44,500
Rent Expense - Selling space	16,000
Store Supplies expense	3,850
Advertising expense	26,000
Office Salaries expense	40,750
Rent Expense - Office space	3,800
Office supplies expense	1,100

Total selling and administration expenses		1,36,000

Net Operating Income		55,175

The net operating income = $ 55,175.

Explanation of Solution

The steps involved in the preparation of multiple-step income statement can be described as −
The information given related to the income statement −

Net Sales = $ 306,775
Cost of Goods sold = $ 115,600
Sales salaries expense = $ 44,500
Rent Expense - Selling space = $ 16,000
Store Supplies expense =$ 3,850
Advertising expense = $ 26,000
Office Salaries expense = $ 40,750
Rent Expense - Office space = $ 3,800
Office supplies expense = $ 1,100

The gross profit is −

Gross profit = Net sales – Cost of Goods soldGross profit = $ 306,775 − $ 115,600Gross profit = 191,175

The total selling administrative expenses −

Total selling administrative expenses = Sales salaries expense + Rent Expense − Selling space +Store Supplies expense + Advertising expense + Office Salaries expense + Rent Expense − Office space + Office supplies expense Total selling administrative expenses = $ 44,500 + $ 16,000 + $ 3,850 + $ 26,000 + $ 40,750 + $ 3,800 + $ 1,100Total selling administrative expenses = $ 136,000

The net operating income will be −

Net Operating income = Gross profit − Total selling administrative expenses Net Operating income = $ 191,175 − $ 136,000Net Operating income = $ 55,175

The net operating income = $ 55,175.

Conclusion

Thus, the multiple-step income statement has been prepared.

Requirement 4

To determine

To prepare:

Single-step income statement

Requirement 4

Expert Solution

Answer to Problem 3BPSB

Solution:

Barkley's Company
Single-Step Income Statement
Net Sales		306,775

Less: Total expenses
Cost of Goods sold	115,600
Sales salaries expense	44500
Rent Expense - Selling space	16000
Store Supplies expense	3850
Advertising expense	26000
Office Salaries expense	40750
Rent Expense - Office space	3800
Office supplies expense	1100

Total expenses		251,600

Net Income		55,175

Explanation of Solution

Explanation:

The steps involved in the preparation of single-step income statement can be described as −
The information given related to the income statement −

Net Sales = $ 306,775
Cost of Goods sold = $ 115,600
Sales salaries expense = $ 44,500
Rent Expense - Selling space = $ 16,000
Store Supplies expense =$ 3,850
Advertising expense = $ 26,000
Office Salaries expense = $ 40,750
Rent Expense - Office space = $ 3,800
Office supplies expense = $ 1,100

The total expenses −

Total expenses = Cost of goods sold +Sales salaries expense + Rent Expense − Selling space +Store Supplies expense + Advertising expense +Office Salaries expense + Rent Expense − Office space + Office supplies expense Total expenses =$ 115,600 + $ 44,500 + $ 16,000 + $ 3,850 + $ 26,000 + $ 40,750 + $ 3,800 + $ 1,100Total expenses =$ 251,600

The net income will be −

Net income = Net Sales − Total expenses Net income = $ 306,775 − $ 251,600Net income = $ 55,175

The net income = $ 55,175.

Conclusion

Thus, the single-step income statement has been prepared

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Answer 4

Question

Chapter 5, Problem 3BPSB

Requirement 1

To determine

To calculate:

Net sales for the year

Requirement 1

Expert Solution

Answer to Problem 3BPSB

Solution:

The net sales for the year = $ 306,775.

Explanation of Solution

The net sales are calculated as −
The information given related to the sales are −

Sales = $ 332,650
Sales Discounts = $ 5,875
Sales returns and allowances = $ 20,000

Net Sales = Sales − Sales Discounts − Sales returns and allowancesNet Sales = $ 332,650 – $ 5,875 – $ 20,000Net Sales = $ 306,775

The net sales for the year = $ 306,775.

Conclusion

Thus, the net sales for the year are calculated.

Requirement 2

To determine

To calculate:

Total cost of merchandise purchased during the year

Requirement 2

Expert Solution

Answer to Problem 3BPSB

Solution:

The total cost of merchandise purchased during the year = $ 134,600

Explanation of Solution

The total cost of merchandise purchases during the year will be computed as −
The information given relate to the cost of merchandise −

Purchase cost of merchandise = $ 138,500
Purchase discount received = $ 2,950
Purchases returns and allowances = $ 6,700
Costs of transportation-in = $ 5,750

Total cost of merchandise = Purchase cost of merchandise − Purchase discount received −Purchases returns and allowances + Costs of transportation−inTotal cost of merchandise = $ 138,500 − $ 2,950 − $ 6,700 + $ 5,750Total cost of merchandise = $ 134,600

The total cost of merchandise = $ 134,600.

Conclusion

Thus, the total cost of merchandise purchased during the year has been calculated.

Requirement 3

To determine

To prepare:

Multiple-step income statement for Barkley’s Company

Requirement 3

Expert Solution

Answer to Problem 3BPSB

Solution:

The multiple-step income statement for Barkley’s Company −

Barkley's Company
Multiple-Step Income Statement
Net Sales		306775
Cost of Goods sold		1,15,600
Gross Margin		1,91,175
Less: Selling and administration Expenses
Sales salaries expense	44,500
Rent Expense - Selling space	16,000
Store Supplies expense	3,850
Advertising expense	26,000
Office Salaries expense	40,750
Rent Expense - Office space	3,800
Office supplies expense	1,100

Total selling and administration expenses		1,36,000

Net Operating Income		55,175

The net operating income = $ 55,175.

Explanation of Solution

The steps involved in the preparation of multiple-step income statement can be described as −
The information given related to the income statement −

Net Sales = $ 306,775
Cost of Goods sold = $ 115,600
Sales salaries expense = $ 44,500
Rent Expense - Selling space = $ 16,000
Store Supplies expense =$ 3,850
Advertising expense = $ 26,000
Office Salaries expense = $ 40,750
Rent Expense - Office space = $ 3,800
Office supplies expense = $ 1,100

The gross profit is −

Gross profit = Net sales – Cost of Goods soldGross profit = $ 306,775 − $ 115,600Gross profit = 191,175

The total selling administrative expenses −

Total selling administrative expenses = Sales salaries expense + Rent Expense − Selling space +Store Supplies expense + Advertising expense + Office Salaries expense + Rent Expense − Office space + Office supplies expense Total selling administrative expenses = $ 44,500 + $ 16,000 + $ 3,850 + $ 26,000 + $ 40,750 + $ 3,800 + $ 1,100Total selling administrative expenses = $ 136,000

The net operating income will be −

Net Operating income = Gross profit − Total selling administrative expenses Net Operating income = $ 191,175 − $ 136,000Net Operating income = $ 55,175

The net operating income = $ 55,175.

Conclusion

Thus, the multiple-step income statement has been prepared.

Requirement 4

To determine

To prepare:

Single-step income statement

Requirement 4

Expert Solution

Answer to Problem 3BPSB

Solution:

Barkley's Company
Single-Step Income Statement
Net Sales		306,775

Less: Total expenses
Cost of Goods sold	115,600
Sales salaries expense	44500
Rent Expense - Selling space	16000
Store Supplies expense	3850
Advertising expense	26000
Office Salaries expense	40750
Rent Expense - Office space	3800
Office supplies expense	1100

Total expenses		251,600

Net Income		55,175

Explanation of Solution

Explanation:

The steps involved in the preparation of single-step income statement can be described as −
The information given related to the income statement −

Net Sales = $ 306,775
Cost of Goods sold = $ 115,600
Sales salaries expense = $ 44,500
Rent Expense - Selling space = $ 16,000
Store Supplies expense =$ 3,850
Advertising expense = $ 26,000
Office Salaries expense = $ 40,750
Rent Expense - Office space = $ 3,800
Office supplies expense = $ 1,100

The total expenses −

Total expenses = Cost of goods sold +Sales salaries expense + Rent Expense − Selling space +Store Supplies expense + Advertising expense +Office Salaries expense + Rent Expense − Office space + Office supplies expense Total expenses =$ 115,600 + $ 44,500 + $ 16,000 + $ 3,850 + $ 26,000 + $ 40,750 + $ 3,800 + $ 1,100Total expenses =$ 251,600

The net income will be −

Net income = Net Sales − Total expenses Net income = $ 306,775 − $ 251,600Net income = $ 55,175

The net income = $ 55,175.

Conclusion

Thus, the single-step income statement has been prepared

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Answer 5

Chapter 5, Problem 3BPSB

Requirement 1

To determine

To calculate:

Net sales for the year

Requirement 1

Expert Solution

Answer to Problem 3BPSB

Solution:

The net sales for the year = $ 306,775.

Explanation of Solution

The net sales are calculated as −
The information given related to the sales are −

Sales = $ 332,650
Sales Discounts = $ 5,875
Sales returns and allowances = $ 20,000

Net Sales = Sales − Sales Discounts − Sales returns and allowancesNet Sales = $ 332,650 – $ 5,875 – $ 20,000Net Sales = $ 306,775

The net sales for the year = $ 306,775.

Conclusion

Thus, the net sales for the year are calculated.

Requirement 2

To determine

To calculate:

Total cost of merchandise purchased during the year

Requirement 2

Expert Solution

Answer to Problem 3BPSB

Solution:

The total cost of merchandise purchased during the year = $ 134,600

Explanation of Solution

The total cost of merchandise purchases during the year will be computed as −
The information given relate to the cost of merchandise −

Purchase cost of merchandise = $ 138,500
Purchase discount received = $ 2,950
Purchases returns and allowances = $ 6,700
Costs of transportation-in = $ 5,750

Total cost of merchandise = Purchase cost of merchandise − Purchase discount received −Purchases returns and allowances + Costs of transportation−inTotal cost of merchandise = $ 138,500 − $ 2,950 − $ 6,700 + $ 5,750Total cost of merchandise = $ 134,600

The total cost of merchandise = $ 134,600.

Conclusion

Thus, the total cost of merchandise purchased during the year has been calculated.

Requirement 3

To determine

To prepare:

Multiple-step income statement for Barkley’s Company

Requirement 3

Expert Solution

Answer to Problem 3BPSB

Solution:

The multiple-step income statement for Barkley’s Company −

Barkley's Company
Multiple-Step Income Statement
Net Sales		306775
Cost of Goods sold		1,15,600
Gross Margin		1,91,175
Less: Selling and administration Expenses
Sales salaries expense	44,500
Rent Expense - Selling space	16,000
Store Supplies expense	3,850
Advertising expense	26,000
Office Salaries expense	40,750
Rent Expense - Office space	3,800
Office supplies expense	1,100

Total selling and administration expenses		1,36,000

Net Operating Income		55,175

The net operating income = $ 55,175.

Explanation of Solution

The steps involved in the preparation of multiple-step income statement can be described as −
The information given related to the income statement −

Net Sales = $ 306,775
Cost of Goods sold = $ 115,600
Sales salaries expense = $ 44,500
Rent Expense - Selling space = $ 16,000
Store Supplies expense =$ 3,850
Advertising expense = $ 26,000
Office Salaries expense = $ 40,750
Rent Expense - Office space = $ 3,800
Office supplies expense = $ 1,100

The gross profit is −

Gross profit = Net sales – Cost of Goods soldGross profit = $ 306,775 − $ 115,600Gross profit = 191,175

The total selling administrative expenses −

Total selling administrative expenses = Sales salaries expense + Rent Expense − Selling space +Store Supplies expense + Advertising expense + Office Salaries expense + Rent Expense − Office space + Office supplies expense Total selling administrative expenses = $ 44,500 + $ 16,000 + $ 3,850 + $ 26,000 + $ 40,750 + $ 3,800 + $ 1,100Total selling administrative expenses = $ 136,000

The net operating income will be −

Net Operating income = Gross profit − Total selling administrative expenses Net Operating income = $ 191,175 − $ 136,000Net Operating income = $ 55,175

The net operating income = $ 55,175.

Conclusion

Thus, the multiple-step income statement has been prepared.

Requirement 4

To determine

To prepare:

Single-step income statement

Requirement 4

Expert Solution

Answer to Problem 3BPSB

Solution:

Barkley's Company
Single-Step Income Statement
Net Sales		306,775

Less: Total expenses
Cost of Goods sold	115,600
Sales salaries expense	44500
Rent Expense - Selling space	16000
Store Supplies expense	3850
Advertising expense	26000
Office Salaries expense	40750
Rent Expense - Office space	3800
Office supplies expense	1100

Total expenses		251,600

Net Income		55,175

Explanation of Solution

Explanation:

The steps involved in the preparation of single-step income statement can be described as −
The information given related to the income statement −

Net Sales = $ 306,775
Cost of Goods sold = $ 115,600
Sales salaries expense = $ 44,500
Rent Expense - Selling space = $ 16,000
Store Supplies expense =$ 3,850
Advertising expense = $ 26,000
Office Salaries expense = $ 40,750
Rent Expense - Office space = $ 3,800
Office supplies expense = $ 1,100

The total expenses −

Total expenses = Cost of goods sold +Sales salaries expense + Rent Expense − Selling space +Store Supplies expense + Advertising expense +Office Salaries expense + Rent Expense − Office space + Office supplies expense Total expenses =$ 115,600 + $ 44,500 + $ 16,000 + $ 3,850 + $ 26,000 + $ 40,750 + $ 3,800 + $ 1,100Total expenses =$ 251,600

The net income will be −

Net income = Net Sales − Total expenses Net income = $ 306,775 − $ 251,600Net income = $ 55,175

The net income = $ 55,175.

Conclusion

Thus, the single-step income statement has been prepared

Answer 6

Chapter 5, Problem 3BPSB

Requirement 1

To determine

To calculate:

Net sales for the year

Requirement 1

Expert Solution

Answer to Problem 3BPSB

Solution:

The net sales for the year = $ 306,775.

Explanation of Solution

The net sales are calculated as −
The information given related to the sales are −

Sales = $ 332,650
Sales Discounts = $ 5,875
Sales returns and allowances = $ 20,000

Net Sales = Sales − Sales Discounts − Sales returns and allowancesNet Sales = $ 332,650 – $ 5,875 – $ 20,000Net Sales = $ 306,775

The net sales for the year = $ 306,775.

Conclusion

Thus, the net sales for the year are calculated.

Answer 7

Chapter 5, Problem 3BPSB

Requirement 1

To determine

To calculate:

Net sales for the year

Answer 8

Requirement 1

Expert Solution

Answer to Problem 3BPSB

Solution:

The net sales for the year = $ 306,775.

Answer 9

Requirement 1

Expert Solution

Answer 10

Requirement 1

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

The net sales are calculated as −
The information given related to the sales are −

Sales = $ 332,650
Sales Discounts = $ 5,875
Sales returns and allowances = $ 20,000

Net Sales = Sales − Sales Discounts − Sales returns and allowancesNet Sales = $ 332,650 – $ 5,875 – $ 20,000Net Sales = $ 306,775

The net sales for the year = $ 306,775.

Answer 13

Conclusion

Thus, the net sales for the year are calculated.

Answer 14

Requirement 2

To determine

To calculate:

Total cost of merchandise purchased during the year

Requirement 2

Expert Solution

Answer to Problem 3BPSB

Solution:

The total cost of merchandise purchased during the year = $ 134,600

Explanation of Solution

The total cost of merchandise purchases during the year will be computed as −
The information given relate to the cost of merchandise −

Purchase cost of merchandise = $ 138,500
Purchase discount received = $ 2,950
Purchases returns and allowances = $ 6,700
Costs of transportation-in = $ 5,750

Total cost of merchandise = Purchase cost of merchandise − Purchase discount received −Purchases returns and allowances + Costs of transportation−inTotal cost of merchandise = $ 138,500 − $ 2,950 − $ 6,700 + $ 5,750Total cost of merchandise = $ 134,600

The total cost of merchandise = $ 134,600.

Conclusion

Thus, the total cost of merchandise purchased during the year has been calculated.

Answer 15

Requirement 2

To determine

To calculate:

Total cost of merchandise purchased during the year

Answer 16

Requirement 2

Expert Solution

Answer to Problem 3BPSB

Solution:

The total cost of merchandise purchased during the year = $ 134,600

Answer 17

Requirement 2

Expert Solution

Answer 18

Requirement 2

Expert Solution

Answer 19

Expert Solution

Answer 20

Explanation of Solution

The total cost of merchandise purchases during the year will be computed as −
The information given relate to the cost of merchandise −

Purchase cost of merchandise = $ 138,500
Purchase discount received = $ 2,950
Purchases returns and allowances = $ 6,700
Costs of transportation-in = $ 5,750

Total cost of merchandise = Purchase cost of merchandise − Purchase discount received −Purchases returns and allowances + Costs of transportation−inTotal cost of merchandise = $ 138,500 − $ 2,950 − $ 6,700 + $ 5,750Total cost of merchandise = $ 134,600

The total cost of merchandise = $ 134,600.

Answer 21

Conclusion

Thus, the total cost of merchandise purchased during the year has been calculated.

Answer 22

Requirement 3

To determine

To prepare:

Multiple-step income statement for Barkley’s Company

Requirement 3

Expert Solution

Answer to Problem 3BPSB

Solution:

The multiple-step income statement for Barkley’s Company −

Barkley's Company
Multiple-Step Income Statement
Net Sales		306775
Cost of Goods sold		1,15,600
Gross Margin		1,91,175
Less: Selling and administration Expenses
Sales salaries expense	44,500
Rent Expense - Selling space	16,000
Store Supplies expense	3,850
Advertising expense	26,000
Office Salaries expense	40,750
Rent Expense - Office space	3,800
Office supplies expense	1,100

Total selling and administration expenses		1,36,000

Net Operating Income		55,175

The net operating income = $ 55,175.

Explanation of Solution

The steps involved in the preparation of multiple-step income statement can be described as −
The information given related to the income statement −

Net Sales = $ 306,775
Cost of Goods sold = $ 115,600
Sales salaries expense = $ 44,500
Rent Expense - Selling space = $ 16,000
Store Supplies expense =$ 3,850
Advertising expense = $ 26,000
Office Salaries expense = $ 40,750
Rent Expense - Office space = $ 3,800
Office supplies expense = $ 1,100

The gross profit is −

Gross profit = Net sales – Cost of Goods soldGross profit = $ 306,775 − $ 115,600Gross profit = 191,175

The total selling administrative expenses −

Total selling administrative expenses = Sales salaries expense + Rent Expense − Selling space +Store Supplies expense + Advertising expense + Office Salaries expense + Rent Expense − Office space + Office supplies expense Total selling administrative expenses = $ 44,500 + $ 16,000 + $ 3,850 + $ 26,000 + $ 40,750 + $ 3,800 + $ 1,100Total selling administrative expenses = $ 136,000

The net operating income will be −

Net Operating income = Gross profit − Total selling administrative expenses Net Operating income = $ 191,175 − $ 136,000Net Operating income = $ 55,175

The net operating income = $ 55,175.

Conclusion

Thus, the multiple-step income statement has been prepared.

Answer 23

Requirement 3

To determine

To prepare:

Multiple-step income statement for Barkley’s Company

Answer 24

Requirement 3

Expert Solution

Answer to Problem 3BPSB

Solution:

The multiple-step income statement for Barkley’s Company −

Barkley's Company
Multiple-Step Income Statement
Net Sales		306775
Cost of Goods sold		1,15,600
Gross Margin		1,91,175
Less: Selling and administration Expenses
Sales salaries expense	44,500
Rent Expense - Selling space	16,000
Store Supplies expense	3,850
Advertising expense	26,000
Office Salaries expense	40,750
Rent Expense - Office space	3,800
Office supplies expense	1,100

Total selling and administration expenses		1,36,000

Net Operating Income		55,175

The net operating income = $ 55,175.

Answer 25

Requirement 3

Expert Solution

Answer 26

Requirement 3

Expert Solution

Answer 27

Expert Solution

Answer 28

Explanation of Solution

The steps involved in the preparation of multiple-step income statement can be described as −
The information given related to the income statement −

Net Sales = $ 306,775
Cost of Goods sold = $ 115,600
Sales salaries expense = $ 44,500
Rent Expense - Selling space = $ 16,000
Store Supplies expense =$ 3,850
Advertising expense = $ 26,000
Office Salaries expense = $ 40,750
Rent Expense - Office space = $ 3,800
Office supplies expense = $ 1,100

The gross profit is −

Gross profit = Net sales – Cost of Goods soldGross profit = $ 306,775 − $ 115,600Gross profit = 191,175

The total selling administrative expenses −

Total selling administrative expenses = Sales salaries expense + Rent Expense − Selling space +Store Supplies expense + Advertising expense + Office Salaries expense + Rent Expense − Office space + Office supplies expense Total selling administrative expenses = $ 44,500 + $ 16,000 + $ 3,850 + $ 26,000 + $ 40,750 + $ 3,800 + $ 1,100Total selling administrative expenses = $ 136,000

The net operating income will be −

Net Operating income = Gross profit − Total selling administrative expenses Net Operating income = $ 191,175 − $ 136,000Net Operating income = $ 55,175

The net operating income = $ 55,175.

Answer 29

Conclusion

Thus, the multiple-step income statement has been prepared.

Answer 30

Requirement 4

To determine

To prepare:

Single-step income statement

Requirement 4

Expert Solution

Answer to Problem 3BPSB

Solution:

Barkley's Company
Single-Step Income Statement
Net Sales		306,775

Less: Total expenses
Cost of Goods sold	115,600
Sales salaries expense	44500
Rent Expense - Selling space	16000
Store Supplies expense	3850
Advertising expense	26000
Office Salaries expense	40750
Rent Expense - Office space	3800
Office supplies expense	1100

Total expenses		251,600

Net Income		55,175

Explanation of Solution

Explanation:

The steps involved in the preparation of single-step income statement can be described as −
The information given related to the income statement −

Net Sales = $ 306,775
Cost of Goods sold = $ 115,600
Sales salaries expense = $ 44,500
Rent Expense - Selling space = $ 16,000
Store Supplies expense =$ 3,850
Advertising expense = $ 26,000
Office Salaries expense = $ 40,750
Rent Expense - Office space = $ 3,800
Office supplies expense = $ 1,100

The total expenses −

Total expenses = Cost of goods sold +Sales salaries expense + Rent Expense − Selling space +Store Supplies expense + Advertising expense +Office Salaries expense + Rent Expense − Office space + Office supplies expense Total expenses =$ 115,600 + $ 44,500 + $ 16,000 + $ 3,850 + $ 26,000 + $ 40,750 + $ 3,800 + $ 1,100Total expenses =$ 251,600

The net income will be −

Net income = Net Sales − Total expenses Net income = $ 306,775 − $ 251,600Net income = $ 55,175

The net income = $ 55,175.

Conclusion

Thus, the single-step income statement has been prepared

Answer 31

Requirement 4

To determine

To prepare:

Single-step income statement

Answer 32

Requirement 4

Expert Solution

Answer to Problem 3BPSB

Solution:

Barkley's Company
Single-Step Income Statement
Net Sales		306,775

Less: Total expenses
Cost of Goods sold	115,600
Sales salaries expense	44500
Rent Expense - Selling space	16000
Store Supplies expense	3850
Advertising expense	26000
Office Salaries expense	40750
Rent Expense - Office space	3800
Office supplies expense	1100

Total expenses		251,600

Net Income		55,175

Answer 33

Requirement 4

Expert Solution

Answer 34

Requirement 4

Expert Solution

Answer 35

Expert Solution

Answer 36

Explanation of Solution

Explanation:

The steps involved in the preparation of single-step income statement can be described as −
The information given related to the income statement −

Net Sales = $ 306,775
Cost of Goods sold = $ 115,600
Sales salaries expense = $ 44,500
Rent Expense - Selling space = $ 16,000
Store Supplies expense =$ 3,850
Advertising expense = $ 26,000
Office Salaries expense = $ 40,750
Rent Expense - Office space = $ 3,800
Office supplies expense = $ 1,100

The total expenses −

Total expenses = Cost of goods sold +Sales salaries expense + Rent Expense − Selling space +Store Supplies expense + Advertising expense +Office Salaries expense + Rent Expense − Office space + Office supplies expense Total expenses =$ 115,600 + $ 44,500 + $ 16,000 + $ 3,850 + $ 26,000 + $ 40,750 + $ 3,800 + $ 1,100Total expenses =$ 251,600