Garcia Company Has the Following Information as of December 31

question 26

Essay

Garcia Company has the following information as of December 31, the end of its fiscal year:
Instructions:
Using the information presented above, prepare the Cost of Goods Sold section of the income statement.
$\begin{array}{lr}\text { Purchases discounts } & 5,700 \\\text { Merchandise inventory, December } 31 & 1,57,300 \\\text { Purchases } & 51,300 \\\text { Merchandise inventory, January 1 } & 1,65,160 \\\text { Purchases returns and allowances } & 6,540 \\\text { Freight in } & 20,650 \\\text { Freight out } & 8,250\end{array}$ ​

---

Definitions:

End-of-month Payments

Payments made at the end of the billing month, often related to loans, utilities, or subscriptions.

Compounded Monthly

Interest calculation on the principal and any previously earned interest, which is applied once a month.

Withdrawal

The act of removing funds from an account, plan, or deposit.

Investment

The process of distributing assets, typically funds, in anticipation of earning revenue or gains.