Exercise One: SKY Company uses periodic inventory system and reported the following information related to its merchandising activity for the first Quarter of 2014: Account Balance Account Title $ 30,000 Depreciation expense 10,000 Freight-in 48,000 Gain from selling an equipment Interest expense 12,000 Interest revenue 10,000 Merchandise inventory, March 31 50,000 Merchandise inventory, January 1 30,000 Purchase discount 5,000 Purchase returns and allowances 7,000 Purchases 220,000 Salaries expense 40,000. Sales discounts 20,000 Sales returns and allowances 18,000 Sales revenue 360,000 Utilities expense 10,000 Instructions: 1) Prepare a cost of goods sold schedule. 2) Prepare a multiple step income statement assuming that COGS is $198.000.

Exercise One: SKY Company uses periodic inventory system and reported the following information related to its merchandising activity for the first Quarter of 2014: Account Balance Account Title $ 30,000 Depreciation expense 10,000 Freight-in 48,000 Gain from selling an equipment Interest expense 12,000 Interest revenue 10,000 Merchandise inventory, March 31 50,000 Merchandise inventory, January 1 30,000 Purchase discount 5,000 Purchase returns and allowances 7,000 Purchases 220,000 Salaries expense 40,000. Sales discounts 20,000 Sales returns and allowances 18,000 Sales revenue 360,000 Utilities expense 10,000 Instructions: 1) Prepare a cost of goods sold schedule. 2) Prepare a multiple step income statement assuming that COGS is $198.000.

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Description: Exercise One:SKY Company uses periodic inventory system and reported the following information related to itsmerchandising activity for the first Quarter of 2014:Account BalanceAccount Title$ 30,000Depreciation expense10,000Freight-in48,000Gain from

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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