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B) Cost of goods sold will be shown. *22. Identify the accounts that are added to or deducted from Purchases in a periodic system to determine the cost of goods pur- chased. For each account, indicate whether it is added or deducted. *23 On Iuly 15 a comnany nurchases on

B) Cost of goods sold will be shown. *22. Identify the accounts that are added to or deducted from Purchases in a periodic system to determine the cost of goods pur- chased. For each account, indicate whether it is added or deducted. *23 On Iuly 15 a comnany nurchases on

FINANCIAL ACCOUNTING
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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Question 22

### Educational Website Content #### Practice Questions and Exercises **15.** Cuperty Co. has net sales of $105,000, cost of goods sold of $70,000, and operating expenses of $20,000. What is its gross profit and gross profit rate? **16.** Stefan Page Company reports net sales of $800,000, gross profit of $370,000, and net income of $240,000. What are its operating expenses? **17.** Identify the distinguishing features of an income statement for a merchandising company. **18.** Identify the sections of a multiple-step income statement that relate to (a) operating activities, and (b) nonoperating activities. **19.** How does the single-step form of income statement differ from the multiple-step form? **20.** What title does *Apple* use for gross profit? By how much did its 2019 gross profit change, and in what direction, when compared to 2018? **21.** Indicate the columns of the worksheet in a perpetual system in which (a) inventory and (b) cost of goods sold will be shown. **22.** Identify the accounts that are added to or deducted from Purchases in a periodic system to determine the cost of goods purchased. For each account, indicate whether it is added or deducted. **23.** On July 15, a company purchases on account goods costing $3,000 with credit terms of 2/10, n/30. On July 18, the company receives a $200 credit memo from the supplier for damaged goods. Give the journal entry on July 24 to record payment of the balance due within the discount period, assuming a periodic inventory system. ### Cost of Goods Sold Calculation The following are the components in determining cost of goods sold. Determine the missing values in the table below: | | Cost of Goods Available for Sale | Ending Inventory | Cost of Goods Sold | |---------------|----------------------------------|------------------|--------------------| | **Purchases** | $100,000 | ? | $120,000 | | **?** | | $25,000 | ? | In this exercise, you are required to calculate the missing values for Cost of Goods Available for Sale and Cost of Goods Sold, based on the information provided in the table. ### Explanatory Note on Table The table presents a simplified view of
Transcribed Image Text:### Educational Website Content #### Practice Questions and Exercises **15.** Cuperty Co. has net sales of $105,000, cost of goods sold of $70,000, and operating expenses of $20,000. What is its gross profit and gross profit rate? **16.** Stefan Page Company reports net sales of $800,000, gross profit of $370,000, and net income of $240,000. What are its operating expenses? **17.** Identify the distinguishing features of an income statement for a merchandising company. **18.** Identify the sections of a multiple-step income statement that relate to (a) operating activities, and (b) nonoperating activities. **19.** How does the single-step form of income statement differ from the multiple-step form? **20.** What title does *Apple* use for gross profit? By how much did its 2019 gross profit change, and in what direction, when compared to 2018? **21.** Indicate the columns of the worksheet in a perpetual system in which (a) inventory and (b) cost of goods sold will be shown. **22.** Identify the accounts that are added to or deducted from Purchases in a periodic system to determine the cost of goods purchased. For each account, indicate whether it is added or deducted. **23.** On July 15, a company purchases on account goods costing $3,000 with credit terms of 2/10, n/30. On July 18, the company receives a $200 credit memo from the supplier for damaged goods. Give the journal entry on July 24 to record payment of the balance due within the discount period, assuming a periodic inventory system. ### Cost of Goods Sold Calculation The following are the components in determining cost of goods sold. Determine the missing values in the table below: | | Cost of Goods Available for Sale | Ending Inventory | Cost of Goods Sold | |---------------|----------------------------------|------------------|--------------------| | **Purchases** | $100,000 | ? | $120,000 | | **?** | | $25,000 | ? | In this exercise, you are required to calculate the missing values for Cost of Goods Available for Sale and Cost of Goods Sold, based on the information provided in the table. ### Explanatory Note on Table The table presents a simplified view of
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