Prepare a partial income statement and a partial balance sheet for 2007.

Sales Under the Installment Method – The following information is available for the Butler Company, which began operations in 2007:

2007

2008

Total credit sales (including installment method sales)

$100,000

$160,000

Total cost of goods sold (including installment method cost of goods sold)

72,000

105,000

Installment method sales

60,000

80,000

Installment method cost of goods sold

42,000

52,000

Cash receipts on installment method sales

2007 sales

25,000

26,000

2008 sales

30,000

Cash receipts on other credit sales

28,000

85,000

Required

1. Prepare the journal entries for 2007 and 2008.

2. Prepare a partial income statement and a partial balance sheet for 2007.

 

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