gross margin for year 2019? mith Company engaged in the following transactions during 2018.1) Started the business by issuing $7,500 of common stock for cash.2) The company paid cash to purchase $4,500 of inventory.3) The company sold inventory that cost $3,000 for $7,250 cash.4) Operating expenses incurred and paid during the year, $2,500.Smith Company engaged in the following transactions during 2019:1) The company paid cash to purchase $5,800 of inventory.2) The company sold inventory that cost $7,000 for $15,150 cash.3) Operating expenses incurred and paid during the year, $3,500.Smith uses the perpetual inventory system.Smith's gross margin for the year 2019 is:a. $4,250b. $7,560c. $8,150d. $9,350

Step 1: Define Gross Margin Gross Margin is a financial metric that measures the amount of revenue…

Answered: mith Company engaged in the following…

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 46P: Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and...

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Banksia Company completed the following transactions during 2018-2019. The annual accounting period ends 30 June 2019. a) Purchased inventory on credit at cost of AUD 16,800; perpetual inventory system is used. b) Received a customer deposit of AUD 18,000 from ABC Ltd for services to be rendered in the future. c) Borrowed AUD 900,000 from the bank on 1 March 2019 by giving the bank a six-month, 9% interest bearing note payable. d) Performed AUD 8,000 of the services paid for by ABC Ltd; the rest will be rendered in August 2019. e) Received the electricity bill for AUD 24,200, which will be paid in early July. f) On 1 June 2019 received rent in advance of AUD 21,600 from XYZ Ltd for a 3 month lease of premises from 1 June until 31 August 2019. g) Wages accrued in the last weekly payroll amounted to AUD 23,000 and will be paid on 5 July 2019. Required: 1) Prepare the journal entries for each of these transactions 2) Prepare all adjusting entries required on 30 June 2019
The following are selected 2019 transactions of Kelly Company a. October 1: Purchased inventory from Sid Corporation on account $100,000. Kelly records purchases gross and uses a periodic system. b. November 1: Issued a $60,000 6-month 10% note to Sid in payment of account. c. November 1: Borrowed $80,000 from FB Bank by signing a 15 month, zero interest bearing $110,000 note. Required: 1. Prepare the journal entries for the transactions above. 2. Prepare the adjusting entries as at December 2019
Described below are certain transactions of Pharoah Company for 2021: On May 10, the company purchased goods from Fox Company for $74,900, terms 2/10, n/30. Purchases and accounts payable are recorded at net amounts. The invoice was paid on May 18. 1. On June 1, the company purchased equipment for $96,000 from Rao Company, paying $31,200 in cash and giving a one- year, 9% note for the balance. 2. On September 30, the company discounted at 11% its $220,000, one-year zero-interest-bearing note at Virginia State Bank, receiving $198,000. 3.
VIOLET Company reported total purchases of P 3,200,000 in its accrual basis financial statement on December 31, 2021. Additional information revealed the following: Accounts payable, December 31, 2020 - P 900,0003; Accounts payable, December 31, 2021 - P 1,250,000. What is the amount of purchases under the cash basis on December 31, 2021?
The company completed the following transactions during 2020. Jan 10 sold inventory to Natty Paul, $11,000, on account May 15 wrote off as uncollectible the accounts of Terry Carter, $2,500 and Maggie Cube $400 August 04 received 70% of the amount owed by Natty Paul and wrote off the remainder as uncollectible October 26 received 30% of the funds owed from Maggie Cube as part payment of her account which had been written off earlier as uncollectible. December 31, The Aging schedule showed an estimated $116,500 as uncollectible Requirements: Prepare journal entries for each transaction (No narrations required) Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account. Prepare the balance sheet extract as at Dec 31, 2020, to show the net realizable value for the Accounts Receivable. Assume credit sales for 2019 were $312,000 and that on December 31, 10% of credit sales are estimated to be uncollectible.…
You have been engaged in your second annual examination of the financial statements of S Co. The following data were provided to you by the company accountant: Cash Receipts: Collection on sale on account Cash sales 740,000 100,000 Proceeds of a note payable dated October 1, 2019 and due October 1, 2021, discounted at 18% 30,000 Cash Disbursements: 400,000 Purchase of land and building on April 1, 2019 Full payment of furniture and fixtures purchased on July 1, 2019 On accounts payable and administrative expenses Selling expenses To 518,000 200,000 Of the sales on account, P10,000 was returned because of poor quality and there was a purchase return of P8,000. The following data are also available: December 31, 2018 Accounts Receivable Merchandise inventory Accounts payable Accrued rent expenses December 31, 2019 200,000 220,000 180,000 40,000 150,000 190,000 230,000 40,000 Of the total purchase price of the Land and Building, 40% is allocated to the land. Annual depreciation is 5% on…
Anna's business makes an operating profit of $29,975 in the year ended 31 December 2020, after deducting $7,668 for depreciation. On 31 December 2020 her statement of financial position showed inventory of $33,250, receivables and prepayment of $26,772 and payables $33,556. on december 2019, the corresponding figures were inventory $34,490, receivables and prepayments $22,894 and payables $29,493. What is the net cash inflow from operating activities to be included in Annas statement of cashflow for the year ended 31 December 2020?
Mark Co. started operations in January 2019. From your examination of Mark’s financial statements, you were able to obtain the following information: 12/31/19 12/31/20 Inventory P 126,000 P133,200 Trade Receivable 85,800 60,000 Trade Payable 82,800 85,500 Sales 960,000 990,000 Additional information provides that Celestine paid its suppliers a total of P763,200. In 2020, accounts totaling P6,000 were written off as uncollectible, In addition, bad debts expense of P4,500 per year was recognized in 2019 and 2020. How much was the cash collected during 2020 resulting from sales in 2019…
Mark Co. started operations in January 2019. From your examination of Mark’s financial statements, you were able to obtain the following information: 12/31/19 12/31/20 Inventory P 126,000 P133,200 Trade Receivable 85,800 60,000 Trade Payable 82,800 85,500 Sales 960,000 990,000 Additional information provides that Celestine paid its suppliers a total of P763,200. In 2020, accounts totaling P6,000 were written off as uncollectible, In addition, bad debts expense of P4,500 per year was recognized in 2019 and 2020. How much cash was disbursed during 2020 for purchases of merchandise? P…
The company completed the following transactions during 2020. • Jan 10 sold inventory to Natty Paul, $11,000, on account • May 15 wrote off as uncollectible the accounts of Terry Carter, $2,500 and Maggie Cube $400 • August 04 received 70% of the amount owed by Natty Paul and wrote off the remainder as uncollectible • October 26 received 30% of the funds owed from Maggie Cube as part payment of her account which had been written off earlier as uncollectible. • December 31, The Aging schedule showed an estimated $116,500 as uncollectible Requirements: 1. Prepare journal entries for each transaction (No narrations required) 2. Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account. 3. Prepare the balance sheet extract as at Dec 31, 2020, to show the net realizable value for the Accounts Receivable. 4. Assume credit sales for 2019 were $312,000 and that on December 31, 10% of credit sales are estimated…
Question: Banksia Company completed the following transactions during 2018-2019. The annual accounting period ends 30 June 2019.a) Purchased inventory on credit at cost of AUD 16,800; perpetual inventory system is used.b) Received a customer deposit of AUD 18,000 from ABC Ltd for services to be rendered in the future.c) Borrowed AUD 900,000 from the bank on 1 March 2019 by giving the bank a six-month, 9% interest bearing note payable.d) Performed AUD 8,000 of the services paid for by ABC Ltd; the rest will be rendered in August 2019.e) Received the electricity bill for AUD 24,200, which will be paid in early July.f) On 1 June 2019 received rent in advance of AUD 21,600 from XYZ Ltd for a 3 month lease of premises from 1 June until 31 August 2019.g) Wages accrued in the last weekly payroll amounted to AUD 23,000 and will be paid on 5 July 2019.Required:1) Prepare the journal entries for each of these transactions. 2) Prepare all adjusting entries required on 30 June 2019.
Following are selected balance sheet accounts of Del Conte Corp. at December 31, 2021 and 2020, and the increases or decreases in each account from 2020 to 2021. Also presented is selected income statement information for the year ended December 31, 2021, and additional information. Additional information: Accounts receivable relate to sales of merchandise. During 2021, equipment costing $60,000 was sold for cash. During 2021, bonds payable with a face value of $40,000 were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium. Required:Items 1 through 5 represent activities that will be reported in Del Conte's statement of cash flows for the year ended December 31, 2021. The following two responses are required for each item: Determine the amount that should be reported in Del Conte's 2021 statement of cash flows. Select the category (i.e., O - Operating activity, I - Investing activity and F - Financing activity) in which the…

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