At the beginning of June, Circuit Country has a balance in inventory of $2,350. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $2,050, terms 2/15, n/45.June 4 Pay cash for freight charges related to the June 2 purchase from Radio World, $270.June 8 Return defective radios to Radio World and receive credit, $400.June 10 Pay Radio World in full.June 11 Sell radios to customers on account, $3,700, that had a cost of $2,550.June 18 Receive payment on account from customers, $2,700.June 20 Purchase radios on account from Sound Unlimited for $3,150, terms 2/10, n/30.June 23 Sell radios to customers for cash, $4,650, that had a cost of $2,950.June 26 Return damaged radios to Sound Unlimited and receive credit of $500.June 28 Pay Sound Unlimited in full. 3. Prepare the top section of the multiple-step income statement through gross profit for the month of June. CIRCUIT COUNTRYMultiple-step Income Statement (partial)For the month of June Cost of goods sold: Beginning inventory Cost of goods available for sale Cost of goods sold

Income statement is prepared to show the net income or net loss of the company. It includes the…

Answered: At the beginning of June, Circuit…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

At the beginning of June, Circuit Country has a balance in inventory of $2,350. The following transactions occur during the month of June.

June	2	Purchase radios on account from Radio World for $2,050, terms 2/15, n/45.
June	4	Pay cash for freight charges related to the June 2 purchase from Radio World, $270.
June	8	Return defective radios to Radio World and receive credit, $400.
June	10	Pay Radio World in full.
June	11	Sell radios to customers on account, $3,700, that had a cost of $2,550.
June	18	Receive payment on account from customers, $2,700.
June	20	Purchase radios on account from Sound Unlimited for $3,150, terms 2/10, n/30.
June	23	Sell radios to customers for cash, $4,650, that had a cost of $2,950.
June	26	Return damaged radios to Sound Unlimited and receive credit of $500.
June	28	Pay Sound Unlimited in full.

3. Prepare the top section of the multiple-step income statement through gross profit for the month of June.

CIRCUIT COUNTRY
Multiple-step Income Statement (partial)
For the month of June

Cost of goods sold:
Beginning inventory





Cost of goods available for sale

Cost of goods sold