On a separate spreadsheet, do the following. Make sure the right amount is shown on the excel spreadsheet.
1. Given the following data, prepare an appropriate balance sheet.
Assets include: Case - $2,973
Accounts receivable - $1,118
Merchandise inventory - $17,476
Equipment - $16,951
Liabilities include:
Accounts payable – $2,417
Wages payable – $884
Mortgage note payable – $15,000
Owner’s capital is $23,000
2. Given the following data, complete the income statement using the following information:
Gross sales: $25,283
Returns and allowances: $492
Cost of beginning inventory: $5,384
Cost of purchases: $18,923
Cost of ending inventory: $5,557
Total operating expense: $3,750