Merchandising Income Statement: Perpetual Inventory System
Selected accounts from Murray's Furniture Store's adjusted trial balance as of June 30, 2014, the end of the fiscal year, follow.
| Murray's Furniture Store |
| Partial Adjusted Trial Balance |
| June 30, 2014 |
| Sales |
162,000 |
| Sales Returns and Allowances |
2,000 |
| Cost of Goods Sold |
61,400 |
| Freight-In |
2,300 |
| Store Salaries Expense |
32,625 |
| Office Salaries Expense |
12,875 |
| Advertising Expense |
24,300 |
| Rent Expense |
2,400 |
| Insurance Expense |
1,200 |
| Utilities Expense |
1,560 |
| Store Supplies Expense |
2,880 |
| Office Supplies Expense |
1,175 |
| Depreciation Expense - Store Equipment |
1,050 |
| Depreciation Expense - Office Equipment |
800 |
| Income Tax Expense |
2,700 |
Prepare a multistep income statement for Murray's. Freight-In should be combined with Cost of Goods Sold. Store Salaries Expense, Advertising Expense, Store Supplies Expense, and Depreciation Expense-Store Equipment are selling expenses. The other expenses are general and administrative expenses. The company uses the perpetual inventory system. Show details of net sales and operating expenses.