The following amounts appeared on Plymouth Electronics adjusted trial balance as of December 31, 2020....
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Accounting
The following amounts appeared on Plymouth Electronics adjusted trial balance as of December 31, 2020.
Debit Credit Merchandise inventory $ 19,500
Other assets 487,785
Liabilities $ 312,370
Celine Plymouth, capital 247,605
Celine Plymouth, withdrawals 67,000
Sales 942,000
Sales discounts 14,580
Sales returns and allowances 5,715
Interest income 720
Cost of goods sold 719,000
Sales salaries expense 79,200
Office salaries expense 56,500
Rent expense, selling space 33,000
Rent expense, office space 3,000
Store supplies expense 1,620
Office supplies expense 735
Depreciation expense, store equipment 8,910
Depreciation expense, office equipment 2,760
Insurance expense 3,390
Totals $ 1,502,695 $ 1,502,695
Required:
1. Prepare a 2020 classified multiple-step income statement for Plymouth Electronics.
2. Prepare a single-step income statement.
Analysis Component: Calculate the gross profit ratio for the year ended December 31, 2020, and compare it to the prior year, commenting on whether the change was favourable or unfavourable. The gross profit ratio for Plymouth Electronics year ended December 31, 2019, was 32%. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
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