Preparing classified financial statements. LO 1, 2, 3
Wood Design Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below is from the firm's worksheet for the year ended December 31, 2013.
ACCOUNTS Debit Credit
Cash $ 23,100
Petty Cash Fund 400
Notes Receivable 10,800
Accounts Receivable 86,164
Allowance for Doubtful Accounts $ 5,000
Merchandise Inventory 224,000
Warehouse Supplies 2,760
Office Supplies 1,320
Prepaid Insurance 7,200
Land 36,000
Building 168,000
Accumulated Depreciation-Building 48,000
Warehouse Equipment 32,000
Accumulated Depreciation-Warehouse Equipment 14,400
Delivery Equipment 46,000
Accumulated Depreciation-Delivery Equipment 17,600
Office Equipment 20,000
Accumulated Depreciation-Office Equipment 9,000
Notes Payable 19,200
Accounts Payable 38,000
Interest Payable 480
Mortgage Payable 56,000
Loans Payable, Long-term 12,000
Chuck Kirby, Capital (Jan. 1) 397,640
Chuck Kirby, Drawing 126,000
Income Summary 234,000 224,000
Sales 1,665,884
Sales Returns and Allowances 17,200
Interest Income 1,480
Purchases 757,000
Freight In 12,800
Purchases Returns and Allowances 7,440
Purchases Discounts 10,160
Warehouse Wages Expense 189,600
Warehouse Supplies Expense 6,100
Depreciation Expense-Warehouse Equipment 4,800
Salaries Expense-Sales 259,200
Travel and Entertainment Expense 20,500
Delivery Wages Expense 59,330
Depreciation Expense-Delivery Equipment 8,800
Salaries Expense-Office 69,600
Office Supplies Expense 3,000
Insurance Expense 5,200
Utilities Expense 8,290
Telephone Expense 5,520
Payroll Taxes Expense 54,000
Property Taxes Expense 4,600
Uncollectible Accounts Expense 4,800
Depreciation Expense-Building 8,000
Depreciation Expense-Office Equipment 3,000
Interest Expense 7,200
Totals $ 2,526,284 $ 2,526,284
1. Prepare a classified income statement for the year ended December 31, 2013. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses