1 Use the following table for the following questions (Hint Identify which accounts are in Merchandise Available for sale, and which are Net Sales, one account is neither) Merchandise Sales Purchases discounts Merchandise Inventory Jan 1 Purchases returns and allowances Sales Returns and Allowances Purchases Freight In Merchandise Inventory Jan 31 a. Merchandise available for sale b. What is the amount of net sales c. What is the Cost of Merchandise Sold d. What is the gross profit 420,000 2,500 75,000 1,300 32,000 220,000 8,000 54,000 Available For Sale Net Sales

1 Use the following table for the following questions (Hint Identify which accounts are in Merchandise Available for sale, and which are Net Sales, one account is neither) Merchandise Sales Purchases discounts Merchandise Inventory Jan 1 Purchases returns and allowances Sales Returns and Allowances Purchases Freight In Merchandise Inventory Jan 31 a. Merchandise available for sale b. What is the amount of net sales c. What is the Cost of Merchandise Sold d. What is the gross profit 420,000 2,500 75,000 1,300 32,000 220,000 8,000 54,000 Available For Sale Net Sales

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The entry to record the sale of $20,000 of merchandise on account with cost of $14,000, would include: a. credit to accounts receivable for $14,000 b. debit to accounts receivable for $20,000 c. debit to cost of goods sold for $20,000 d. credit to inventory for $20,000
Sales revenue Purchases Net income as a percent of sales revenue Beginning inventory Expenses including income taxes Tax rate a. Required a. Prepare the company's single-step income statement. b. Prepare the journal entry at period-end to eliminate beginning inventory and to record ending inventory. Note: Do not use negative signs with your answers. Income Statement Sales revenue Cost of goods sold: Beginning inventory Plus: Purchases Cost of goods available for sale Less: Ending inventory Cost of goods sold Gross margin Expenses Income before taxes Income taxes Net income $ $ $440,000 $308,000 $ 15% $55,000 $99,000 25% 440,000 55,000 308,000 X 0 x 0 x 0 x x 0 x 0 x 0 x
Objective To record merchandise trnasaction in general journal form Direction: Record the following transaction of Sterling Company in general journal from: a) Sold merchandise on account to Smith CO$8,000. B) Sold merchandise for cash $500 C) Purchased merchandise on credit from Sutton Co., $6,500 d) Issued a credit memorandum to Paul Jones for the return of return of damaged merchandise $300 e) Issued a check to Tami Owens for the return of merchandise that was the wrong model $175 f) Returns merchandise to B & M Manufacturing Co. and recived credit, $4,200. g) Returned merchandise to Mobley Co. and recived a cash refund $800
When using a perpetual inventory system, the journal entry to record the Cost of Merchandise Sold is a. debit Cost of Merchandise Sold; credit Merchandise Inventory b. debit Merchandise Inventory; credit Cost of Merchandise Sold C. debit Cost of Merchandise Sold; credit Sales Od. No journal entry is made to record the Cost of Merchandise Sold.
Under the perpetual inventory system, in addition to making the entry to record a sale, a company would a. Debit Merchandise Inventory and Credit to Cost of Goods Sold. b. Debit to Cost of Goods Sold and credit to Merchandise Inventory c. Deb it to Cost of Goods Sold and credit to purchases d. No entry
Assume the perpetual inventory system is used. Sales $642,363 Merchandise Inventory 582,620 Sales Discounts 58,010 Interest Expense 3,777 Sales Returns and Allowances 90,232 Interest Revenue 10,268 Cost of Goods Sold 225,598 Rent Expense 15,090 Depreciation Expense-Office Equipment 3,400 Insurance Expense 2,450 Advertising Expense 12,870 Accounts Receivable 101,440 Office Supplies Expense 1,600 Rent Revenue 23,680 Sales Salaries Expense 30,410 Accounts Payable 138,404 Common Stock 59,419 Marketing Expense 33,000 A. Use the data provided to compute net sales for 2019.
Journalize the following merchandise transactions: (If an amount box does not require an entry, leave it blank.) a. Sold merchandise on account, $12,900, with terms 2/10, net 30. The cost of the merchandise sold was $8,385. Sale Cost b. Received payment within the discount period.
Sales Transactions Journalize the following merchandise transactions: a. Sold merchandise on account, $23,950 with terms 2/10, n/30. The cost of the merchandise sold was $14,370. If an amount box does not require an entry, leave it blank. Sale Accounts Receivable Sales Cost Cost of Merchandise Sold Merchandise Inventory b. Received payment less the discount. If an amount box does not require an entry, leave it blank. Cash Accounts Receivable c. Issued a $1,100 credit memo for damaged merchandise. The customer agreed to keep the merchandise. If an amount box does not require an entry, leave it blank. Customer Refunds Payable Accounts Receivable
Review the following: Data Table Cost of Goods Sold $101 Gross Sales 181 Sales Returns and Allowances 16 Sales Discounts 21 Operating Expenses 47 From the information provided, calculate: a. Gross profit b. Net income or net loss Calculate (a) Gross profit. - = Gross profit - = Calculate (b) Net income or net loss. (Use parentheses or a minus sign to show a net loss.) - = Net income or net loss - =
Enter the missing dollar amounts for the income statement for each of the following independent cases. (Hint: In Case B, work from the bottom up.) Net sales revenue Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Expenses Pretax income (loss) $ Case A $ 11,010 4,900 10,310 7,530 220 $ 1,710 $ Case B 6,590 15,240 10,900 $ 1,500 (570) $ Case C $ 3,840 9,340 13,180 $ 6,040 4,360 520 1,160
Journalizing Sales Transactions Enter the following transactions in a sales journal. Use a 6% sales tax rate. May 1 Sold merchandise on account to J. Adams, $1,800, plus sales tax. Sale No. 488. 4 Sold merchandise on account to B. Clark, $1,800, plus sales tax. Sale No. 489. 8 Sold merchandise on account to A. Duck, $1,500, plus sales tax. Sale No. 490. 11 Sold merchandise on account to E. Hill, $1,950, plus sales tax. Sale No. 491.
Question Content Area An invoice received included the following information: merchandise price, $4,500; terms 1/10, n/eom; FOB shipping point with prepaid freight of $460. Assuming that a credit for merchandise returned of $900 is granted prior to payment and that the invoice is paid within the discount period, what amount of cash should be paid by the buyer? a. $4,910 b. $4,500 c. $4,024 d. $900