Bold Interiors reported the following transactions in October 2020: A (Click on the icon to view the transactions.) Requirements 1. Record the transactions for the month of October assuming the periodic inventory system is used. 2. Prepare a partial income statement through gross profit for the month ending October 31, 2020. 3. Assume it is the company's year-end. Prepare the end-of-period entries to update inventory and record cost of goods sold. 4. Assume last month's gross profit percentage was 34%. Has this improved or declined in October? What likely accounts for this change? Requirement 1. Record the transactions for the month of November assuming the periodic inventory system is used. (Record debits first, then credits. Enter explanations on the last line.) Oct. 3: Sold merchandise on account to Erica Button, $2,000, terms 5/10, n/30. Transactions Oct. 3 Sold merchandise on account to Erica Button, S2,000, terms 5/10, n/30. 5 Sold merchandise on account to Alyson O'Malley, $2,600, terms 2/10, n/30. 8 Bought $1,425 of merchandise inventory on account. Paid $140 for the freight fee on the inventory. 10 Collected payment from Erica Button for the October 3 sale. 13 Alyson O'Malley returned $2,100 of the merchandise bought on October 5. 14 Collected payment from Alyson O'Malley for the balance of the October 5 sale 15 Returned $65 of inventory that was defective from the October 8 purchase. 26 Paid the account payable from the October 8 purchase. 31 Physical count indicated that Bold Interiors had $300 in ending inventory. The balance in beginning inventory is $450. Print Done

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Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.