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BES-1 The components in Deschenes Company's income statement are presented below. Deter- mine the missing amounts. 30 Sales $75,000 108,000 ? Cost of Goods Sold ? $70,000 71,900 Gross Profit $ 31,500 ? 109,600 Operating Expenses ? ? $39,500 Net Income $10,800 29,500 ?

BES-1 The components in Deschenes Company's income statement are presented below. Deter- mine the missing amounts. 30 Sales $75,000 108,000 ? Cost of Goods Sold ? $70,000 71,900 Gross Profit $ 31,500 ? 109,600 Operating Expenses ? ? $39,500 Net Income $10,800 29,500 ?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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BE5-1

BES-1 The components in Deschenes Company's income statement are presented below. Deter- mine the missing amounts. Sales $75,000 108,000 ? Cost of Goods Sold ? $70,000 71,900 Gross Profit $ 31,500 ? 109,600 Operating Expenses ? ? $39,500 Net Income $10,800 29,500 ? (c) BES-2 Prepare the journal entries to record the following transactions on Rowen Company's books: (a) On March 2, Hunt Company sold $900,000 of merchandise to Rowen Company, terms n/30. The cost of the merchandise sold was $600,000. (b) On March 6, Rowen Company returned $130,000 of the merchandise purchased on March 2
Transcribed Image Text:BES-1 The components in Deschenes Company's income statement are presented below. Deter- mine the missing amounts. Sales $75,000 108,000 ? Cost of Goods Sold ? $70,000 71,900 Gross Profit $ 31,500 ? 109,600 Operating Expenses ? ? $39,500 Net Income $10,800 29,500 ? (c) BES-2 Prepare the journal entries to record the following transactions on Rowen Company's books: (a) On March 2, Hunt Company sold $900,000 of merchandise to Rowen Company, terms n/30. The cost of the merchandise sold was $600,000. (b) On March 6, Rowen Company returned $130,000 of the merchandise purchased on March 2
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Explanation -

Income Statement -

Income Statement includes income earned and Expense incurred during the financial year. It is prepared using accrual concept of accounting. The result of the statement will give net income or loss for the period.

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