Tariq Fisher Company uses a perpetual inventory system. On January 1, its inventory account had a beginning balance of Rs 450,000. Tariq engaged in the following transactions during the year:Prepare all necessary transaction as General Entries and answer given below option.Purchased merchandise inventory for Rs 500,000.Generated net sales of Rs 600,000.Recorded inventory shrinkage of Rs 10,000 after taking a physical inventory at year-end.Reported gross profit for the year of Rs 180,000 in its income statement.At what amount was Cost of Goods Sold reported in the company’s year-end income statement?At what amount was Merchandise Inventory reported in the company’s year-end balance sheet?Immediately prior to recording inventory shrinkage at the end of the year, what was the balance of the Cost of Goods Sold account? What was the balance of the Merchandise Inventory account?d- Calculate the Gross profit margin ratio

The general entries for the transactions,calculation of amount of Cost of Goods Sold, merchandise…

Answered: At what amount was Cost of Goods Sold…

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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Tariq Fisher Company uses a perpetual inventory system. On January 1, its inventory account had a beginning balance of Rs 450,000. Tariq engaged in the following transactions during the year:Prepare all necessary transaction as General Entries and answer given below option.

Purchased merchandise inventory for Rs 500,000.
Generated net sales of Rs 600,000.
Recorded inventory shrinkage of Rs 10,000 after taking a physical inventory at year-end.
Reported gross profit for the year of Rs 180,000 in its income statement.
At what amount was Cost of Goods Sold reported in the company’s year-end income statement?
At what amount was Merchandise Inventory reported in the company’s year-end balance sheet?
Immediately prior to recording inventory shrinkage at the end of the year, what was the balance of the Cost of Goods Sold account? What was the balance of the Merchandise Inventory account?

d- Calculate the Gross profit margin ratio

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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