Good to Go Auto Products distributes a to ble parts to servi

Good to Go Auto Products distributes a to ble parts to service stations and repair shop. The ad olows is from the firm\'s worksheet for the year ended December 31, 2019 ted ri- trial balance data that 97,600 Petty Cash Tand Notes Receivable, due 2020 Aceounts Receivable 17,000 138,800 2,400 Allovance for Doubtful Aocousts Interest Receivable 127,100 1,900 Herchandise Inventory Harehouse Supplies offiee Sapplies Prepaid Inaurance 3,240 14,600 100,000 ailding Mocumulated Depreclation-Bailding 16,000 18,400 Accumulated Depreciation-Warehouse Equipmest office Equipment Accunal Notes Payable, due 2020 Accoants Payable Isterest 7ayable 8,000 ated Depreelation-Office Equipment 13,600 5,500 13,000 322,110 Mortgage Payable Coiin O-arien, Capiisl (an. 69,250 130,000 127,100 1, 082,300 Incone Summary Sales Returns and Allovanees 449,000 8,400 Freight In Parchases Returns and Allavances 3,250 107,200 Warehouse Vages Expense Warehouse Supplies Expense Equipment 1s0,300 22.600 36,025 83,600 Travel Expense Delivery Expense Salaries Expense-offiee offion Supplies Expense neursnce Expense veilieies Expense Telephone Expense Payroll Taxes Expense Building Repairs Expen Progerty Taxes Expense 30.200 15,000 Aeeounta Expenae Depreciation Expense-Office Equipment Interest Expeese 1,674,800 1,674,90 t Prepare a classifled income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses 2. Prepare a statement of owners equity for the year ended December 31, 2019. No additional investments were made during the 3. Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than one year What percentage of total operating expenses is attributable to warehouse expenses? Complete this question by entering your answers in the tabs below

Solution

GOOD TO GO AUTO PRODUCTS Income Statement Year Ended December 31, 2019 Operating Revenue Sales                                     1,082,300 Less Sales Returns and Allowance                      7,000 Net Sales                                  1,075,300 Cost of Goods Sold Merchandise Inventory, January 1, 2019       130,000 Purchases                                 449,000 Freight In                                       8,400 Delivered Cost of Purchases                    457,400 Less Purchase Returns and Allowance          12,250 Purchase Discounts                           7,840    20,090 Net Delivered Cost of Purchases               437,310 Total Merchandise Available for Sale            567,310 Less Merchandise Inventory, Dec 31, 2019       127,100 Cost of Goods Sold                              440,210 Gross Profit on Sales                               635,090 Operating Expenses Warehouse Expenses Warehouse Wages Expense     107,200 Warehouse Supplies Expense         4,400 Depreciation Expense—Warehouse Equipment      2,000 Total Warehouse Expense 113,600 Selling Expenses Salaries Expense—Sales                   150,300 Travel Expense    22,600 Delivery Expense    36,025 Total Selling Expense                     208,925 General and Administrative Expenses Salaries Expense—Office           83,600 Office Supplies Expense             1,080 Insurance Expense                8,475 Utilities Expense                  6,600 Telephone Expense                3,140 Payroll Taxes Expense            30,200 Building Repairs Expense           2,300 Property Taxes Expense          15,000 Uncollectible Accounts Expense      2,180 Depreciation Expense—Building      4,200 Depreciation Expense—Office Equipment      1,480 Total General and Admin Expenses         158,255 Total Operating Expenses                         480,780 Income from Operations                            154,310 Other Income Interest Income                                440 Other Expense Interest Expense                                 2,600 Net Nonoperating Expenses                             2,160 Net Income for Year                               152,150 GOOD TO GO AUTO PRODUCTS Statement of Owner’s Equity December 31, 2019 Colin O Srien, Capital, January 1, 2019      322,110 Net Income for Year                          152,150 Less Withdrawals for Year                       69,250 Increase in Capital                           82,900 Colin O Srien, Capital, December 31, 2019    405,010 GOOD TO GO AUTO PRODUCTS Balance Sheet December 31, 2019 Assets Current Assets Cash                                     97,600 Petty Cash Fund                                   400 Notes Receivable        17,000 Accounts Receivable                    138,800 Less Allowance for Doubtful Accounts           2,400      136,400 Interest Receivable             170 Merchandise Inventory                     127,100 Prepaid Expenses Warehouse Supplies                   1,900 Office Supplies                          560 Prepaid Insurance                       3,240          5,700 Total Current Assets                       384,370 Plant and Equipment Land      14,600 Building      100,000 Less Accumulated Depreciation               16,000      84,000 Warehouse Equipment                           18,400 Less Accumulated Depreciation                 8,800        9,600 Office Equipment                             8,000 Less Accumulated Depreciation                 3,200        4,800 Total Plant and Equipment                  113,000 Total Assets                               497,370 Liabilities and Owner’s Equity Current Liabilities Notes Payable                             13,600 Accounts Payable                          55,500 Interest Payable                                 260 Total Current Liabilities                      69,360 Long Term Liabilities Loans Payable—Long-Term                                 10,000 Mortgage Payable                                         13,000 Total Long term liabilities        23,000 Owner’s Equity Colin O Srien, Capital                       405,010 Total Liabilities and Owner’s Equity             497,370