A Merchandise Business (Periodic) A Merchandise Business (Perpetual)
Income Statement Income Statement
For the Year Ended December 31, 20~ For the Year Ended December 31, 20~
Revenue Revenue
Sales Revenue $52,000 Sales Revenue $52,000
Sales Returns ($1,000) Sales Returns ($1,000)
Sales Discounts (400) (1,400) Sales Discounts (400) (1,400)
Net Sales $50,600 Net Sales 50,600
Less: Cost of Goods Sold (34500)
Cost of Goods Sold Gross Profit $16,100
Beginning Inventory $25,000 Operating Expenses
Add: Purchases $39,000
Less: Purchase Returns and Allowances (1,100) Advertising Expense $1,100
Less: Purchase Discounts (200) Amortization Expense - Furniture 1,400
Net Purchases 37,700 Amortization Expense - Equipment 2,700
Add: Frieght-in 800 Amortization Expense - Truck 120
Goods Available for Sale 63,500 Bad Debt Expense 110
Less: Ending Inventory (29,000) Car Expense 300
Cost of Goods Sold 34,500 Frieght-out 400
Gross Profit $16,100 Frieght-out 400
Insurance Expense 700
Operating Expenses Maintenance Expense 2,000
Miscellaneous Expense 200
Advertising Expense $1,100 Rent Expense 350
Amortization Expense - Furniture 1,400 Supplies Expense 200
Amortization Expense - Equipment 2,700 Utilities Expense 2,550
Amortization Expense - Truck 120 Total Operating Expenses $12,130
Bad Debt Expense 110
Car Expense 300 Operating Income (Income before Interest, Taxes and Extraordinary Items) $3,970
Frieght-out 400
Insurance Expense 700 Interest Expense ($950)
Maintenance Expense 2,000 Loss on Sale of Assets (4,000)
Miscellaneous Expense 200 Total Non-Operating Expenses (4,950)
Rent Expense 350
Supplies Expense 200 Net Income ($980)
 
Utilities Expense 2,550
Total Operating Expenses $12,130
 
Operating Income (Income before Interest, Taxes and Extraordinary Items) $3,970
Interest Expense ($950)
Loss on Sale of Assets (4,000)
Total Non-Operating Expenses (4,950)
Net Income ($980)