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Based on the following transactions, answer the following questions. i. Inventory costing $57,400 was purchased on account. Inventory costing $49,200 was sold for $82,000. Eighty percent of the sales were for cash. Cash collected from credit customers (those who bought on account) totalled $16,400. A lease was signed at the beginning of the year, requiring monthly payments of $800. The rent for the first month was paid when the lease was signed. After that, the $800 rent was paid on the last day of each month, to cover the following month. Supplies costing $4,500 were purchased for cash. At the end of the year, $400 of the supplies were still unused. Wages of $30,800 were paid during the year. Also, wages of $400 remained unpaid at year end. ii. iii. iv. V. vi. (a) - Your answer is partially correct. Calculate the revenues, expenses, and net income that would be reported on the cash basis. (Enter loss amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Expenses Net Income /(Loss) $ 82,000 44,700 37,300

Based on the following transactions, answer the following questions. i. Inventory costing $57,400 was purchased on account. Inventory costing $49,200 was sold for $82,000. Eighty percent of the sales were for cash. Cash collected from credit customers (those who bought on account) totalled $16,400. A lease was signed at the beginning of the year, requiring monthly payments of $800. The rent for the first month was paid when the lease was signed. After that, the $800 rent was paid on the last day of each month, to cover the following month. Supplies costing $4,500 were purchased for cash. At the end of the year, $400 of the supplies were still unused. Wages of $30,800 were paid during the year. Also, wages of $400 remained unpaid at year end. ii. iii. iv. V. vi. (a) - Your answer is partially correct. Calculate the revenues, expenses, and net income that would be reported on the cash basis. (Enter loss amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Expenses Net Income /(Loss) $ 82,000 44,700 37,300

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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Based on the following transactions, answer the following questions. i. Inventory costing $57,400 was purchased on account. ii. Inventory costing $49,200 was sold for $82,000. Eighty percent of the sales were for cash. Cash collected from credit customers (those who bought on account) totalled $16,400. A lease was signed at the beginning of the year, requiring monthly payments of $800. The rent for the first month was paid when the lease was signed. After that, the $800 rent was paid on the last day of each month, to cover the following month. Supplies costing $4,500 were purchased for cash. At the end of the year, $400 of the supplies were still unused. Wages of $30,800 were paid during the year. Also, wages of $400 remained unpaid at year end. iii. iv. V. vi. (a) Your answer is partially correct. Calculate the revenues, expenses, and net income that would be reported on the cash basis. (Enter loss amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Expenses LA Net Income /(Loss) $ 82,000 44,700 37,300
Transcribed Image Text:Based on the following transactions, answer the following questions. i. Inventory costing $57,400 was purchased on account. ii. Inventory costing $49,200 was sold for $82,000. Eighty percent of the sales were for cash. Cash collected from credit customers (those who bought on account) totalled $16,400. A lease was signed at the beginning of the year, requiring monthly payments of $800. The rent for the first month was paid when the lease was signed. After that, the $800 rent was paid on the last day of each month, to cover the following month. Supplies costing $4,500 were purchased for cash. At the end of the year, $400 of the supplies were still unused. Wages of $30,800 were paid during the year. Also, wages of $400 remained unpaid at year end. iii. iv. V. vi. (a) Your answer is partially correct. Calculate the revenues, expenses, and net income that would be reported on the cash basis. (Enter loss amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Expenses LA Net Income /(Loss) $ 82,000 44,700 37,300
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