Best Company, a Merchandiser, Sells Office Supplies Required: Prepare an Income Statement for Best Company for the Summarizes

Essay

Best Company, a merchandiser, sells office supplies. The following information summarizes Best's operating activities during 2015:
$$\begin{array} { | l | r | } \hline \text { Utilities Expense } & \$ 6,000 \\\hline \text { Rent for Store Expense } & 8,000 \\\hline \text { Sales Commissions Expense } & 4,500 \\\hline \text { Purchases of Merchandise } & 54,000 \\\hline \text { Inventory on January 1, 2015 } & 30,000 \\\hline \text { Inventory on December 31, 2015 } & 20,500 \\\hline \text { Sales Revenue } & 108,000 \\\hline\end{array}$$ Required: Prepare an income statement for Best Company for the year ended December 31, 2015, using the format below.
$$\begin{array} { | l | l | l | } \hline \text { Sales Revenue } & & \\\hline \text { Cost of Goods Sold } &\quad \quad \quad & \quad \quad\quad \\\hline \text { Beginning Inventory } & & \\\hline \text { Purchases } & & \\\hline \text { Cost of Goods Available for Sale } & & \\\hline \text { Ending Inventory } & & \\\hline \text { Cost of Goods Sold } & & \\\hline \text { Gross Profit } & & \\\hline \text { Selling Expenses } & & \\\hline \text { Sales Commissions Expense } & & \\\hline \text { Administrative Expenses } & & \\\hline \text { Rent Expense } & & \\\hline \text { Utilities Expense } & & \\\hline \text { Total Operating Expenses } & & \\\hline \text { Operating Income } & & \\\hline\end{array}$$