AB Ltd. presents the following selected accounts, all balances are after adjusting journal entries. All accounts have normal balances (accounts which are normally debits have debit balances here and visa-versa). Prepare a multi-step income statement. Advertising Expense Advetising Payable Interest Expense Interest Payable Inventory at beginning of the period Inventory at the end of the period 1,300 1,520 350 1,050 15,100 10,200 800 Equipment - Accumulated Depreciation Equipment - Depreciation Expense Purchases Purchases Discounts Purchases Returns and Allowance Salary and Wages Expense Salary and Wages Payable Sales Sales Discounts Sales Returns and Allowances Transportation In Transportation Out Utilities Expense Required 1: AB's Net Sales for the period must have been: $ 23194 100 4,540 550 70 7,100 530 25,304 880 1,230 400 300 4,540 Required 2: AB's Cost of Goods Available for Sale for the period must have been: $ 19020 Required 3: AB's Cost of Goods Sold for the period must have been: $ 8820 Required 4: AB's Gross Profit on Sales in dollars for the period must have been: $ 14374 Required 5: AB's total Operating Expenses (not including COGS) for the period must have been: $ 13240 Required 6: AB's Net Income (loss) in dollars for the period must have been: $ 784

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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AB Ltd. presents the following selected accounts, all balances are after adjusting journal entries. All accounts have normal balances
(accounts which are normally debits have debit balances here and visa-versa). Prepare a multi-step income statement.
Advertising Expense
Advetising Payable
Interest Expense
Interest Payable
Inventory at beginning of the period
Inventory at the end of the period
1,300
1,520
350
1,050
15,100
10,200
800
Equipment - Accumulated Depreciation
Equipment - Depreciation Expense
Purchases
Purchases Discounts
Purchases Returns and Allowance
Salary and Wages Expense
Salary and Wages Payable
Sales
Sales Discounts
Sales Returns and Allowances
Transportation In
Transportation Out
Utilities Expense
Required 1: AB's Net Sales for the period must have been: $ 23194
Required 2: AB's Cost of Goods Available for Sale for the period must have been: $ 19020
Required 3: AB's Cost of Goods Sold for the period must have been: $ 8820 Ⓡ
Required 4: AB's Gross Profit on Sales in dollars for the period must have been: $14374 Ⓡ
Required 5: AB's total Operating Expenses (not including COGS) for the period must have been: $ 13240 ✔
Required 6: AB's Net Income (loss) in dollars for the period must have been: $ 784 x
100
4,540
550
70
7,100
530
25,304
880
1,230
400
300
4,540
x
Transcribed Image Text:AB Ltd. presents the following selected accounts, all balances are after adjusting journal entries. All accounts have normal balances (accounts which are normally debits have debit balances here and visa-versa). Prepare a multi-step income statement. Advertising Expense Advetising Payable Interest Expense Interest Payable Inventory at beginning of the period Inventory at the end of the period 1,300 1,520 350 1,050 15,100 10,200 800 Equipment - Accumulated Depreciation Equipment - Depreciation Expense Purchases Purchases Discounts Purchases Returns and Allowance Salary and Wages Expense Salary and Wages Payable Sales Sales Discounts Sales Returns and Allowances Transportation In Transportation Out Utilities Expense Required 1: AB's Net Sales for the period must have been: $ 23194 Required 2: AB's Cost of Goods Available for Sale for the period must have been: $ 19020 Required 3: AB's Cost of Goods Sold for the period must have been: $ 8820 Ⓡ Required 4: AB's Gross Profit on Sales in dollars for the period must have been: $14374 Ⓡ Required 5: AB's total Operating Expenses (not including COGS) for the period must have been: $ 13240 ✔ Required 6: AB's Net Income (loss) in dollars for the period must have been: $ 784 x 100 4,540 550 70 7,100 530 25,304 880 1,230 400 300 4,540 x
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