microsoft recorded the following selected balances as of June 30, 2022:Accumulated Depreciation- Office EquipmentCost of Goods SoldGeneral & Administrative ExpensesBill Gates, WithdrawalsInterest ExpensePrepaid Insurance-OfficeSales1-Gross Profit2- Net IncomeNote: Not all data may be neededMultiple Choice(1) Gross Profit $485.000; (2) Net Income $225.000(1) Gross Profit $410,000; (2) Net Income $300,000(1) Gross Profit $485,000; (2) Net Income $300.000(1) Gross Profit $410,000; Net Income: $230,000$70,000Sales DiscountsSales Returns & AllowancesSelling expensesBased on the data above and assuming Microsoft uses a Multiple-Step income statementCalculate(1) Gross Profit $890,000; (2) Net Income $185.000405,000100,00040,00010,0005,000925,00015,00020,00075,000

Solution:- a)Calculation of gross profit as follows:- Gross profit =Net sales-Cost of goods sold

Multiple Choice O Gross Proft $485.000 (2) Net Income $225.000 O Gross Proft $410,000; (2) Net Income $300,000 O Gross Profit $485.000 (2) Net Income $300.000 O Gross Profit $410,000 Net Income: $2.30.000

Multiple Choice O Gross Proft $485.000 (2) Net Income $225.000 O Gross Proft $410,000; (2) Net Income $300,000 O Gross Profit $485.000 (2) Net Income $300.000 O Gross Profit $410,000 Net Income: $2.30.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: On November 1, Jasper Company loaned another company $270,000 at a 8.0% interest rate. The note…

A: Interest revenue reported in first year = Amount of loan x rate of interest x No. of months / 12

Q: company had no office supplies available at the beginning of the year. During the year, the company…

A: Solution: Office supplies expenses is the offices supplies used during the period. Tt is computed as…

Q: Bonita Industries reported cost of goods sold as follows. Beginning inventory Cost of goods…

A: The cost of goods sold includes the cost of goods that are sold during the period. The error in…

Q: A company purchased $9,800 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it…

A: The term 3 / 10 or n/ 45 indicates that the payee can avail of the discount of 3 % if he paid the…

Q: N V $1 PV $1 FVA $1 PVA $1 FVAD $1 PVAD $1 1 1.03000 0.97087 1.0000 0.97087 1.0300 1.00000 1.06090…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: Multiple Choice O $214,200. $208,320. $198,030.

A: A hypothetical tax expense is an estimated or projected expense that a company may record on its…

Q: Rappaport Industries has 5,100 perpetual bonds outstanding with a face value of $2,000 each. The…

A: We can determine the PV of tax shield from perpetual debt using the formula below:

Q: The Nile Group is owed $1,010,000 by Scorpion Enterprises under an 10% note with three years…

A: Bad debt expense is the business expense that is incurs when the repayment of the credit priorly…

Q: Prepare an income statement for Hansen Realty for the year ended December 31, 2020. Beginning…

Q: Inspection costs at one of Ratulowski Corporation's factories are listed below: Units Inspection…

A: Variable cost per unit using high-low method = (Highest Cost - Lowest Cost) / (Highest Activity -…

Q: Kevin is the financial manager of Levingston BMW. The shop allows employees to purchase up to two…

A: Taxable income is the total sum of income that an entity earns minus the adjustments and deductions…

Q: The 2017 balance sheet of Kerber's Tennis Shop, Incorporated, showed $790,000 in the common stock…

Q: BBB Leasing purchased a machine for $400,000 and leased it to Jack Tupp Auto Repair on January 1,…

A: A company tracks the financial effects of its leasing activities through a process called lease…

Q: Multiple Choice $308,000 $384,000 sa $460,000 $522,000

A: Increase in retained earnings =384000 Dividend =76000

Q: system: Costs: Wages and salaries Depreciation $ 286,000 270,000 231,000 $ 787,000 Utilities Total…

A: Activity-based costing is a costing method where the indirect cost is assigned to the jobs or…

Q: The following is a partially completed lower section of a departmental expense allocation…

A: Total square feet = 3,300 + 2,700 Total square feet = 6,000

Q: Hélp Save & Ex On January 1, Eastern College received $1,330,000 from its students for the spring…

A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service…

Q: Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three…

A: Cost allocation is the process of allocating the operating costs to different departments on some…

Q: N FV $1 PV $1 FVA $1 PVA $1 FVAD $1 PVAD $1 1 1.03000 0.97087 1.0000 0.97087 1.0300 1.00000 1.06090…

A: Given Information : Deposit amount - $190,000 Period - 2 year Interest rate - 12% compounded…

Q: Duxbury Corporation provided the following information about one of its laptop computers: Number of…

A: FIFO stands for First In First Out. Using FIFO, the oldest inventory is sold out and newer inventory…

Q: If assets are $328,000 and liabilities are $189,000, then equity equals: Multiple Choice $328,000.…

A: The accounting equation, Assets = Liabilities + Equity, shows how a company's resources (assets) are…

Q: ariable costs per unit: Direct materials $ 94 ixed costs per year: $ 539,000 $ 3,675,000 $ 1,350,000…

A: Correct Option is: $691,000

Q: Better Health Company has two service departments distribution of each service department's efforts…

A: The cost represents the expenses incurred by the company on the production process of the company.…

Q: Computation of net income: Net sales 680,400 Less: cost of goods sold (327,600) Gross profit…

A: As requested to Solve Part B so we are answering only Part B.

Q: FV $1 PV $1 FVA $I PVA $1 FVAD $1 Submit PVAD $1 1 1.03000 0.97087 1.0000 0.97087 1.0300 1.00000 2…

A: Periodic Deposit = 3300 Interest Rate = 3% Time Period (N) = 9 years Beginning of period deposits…

Q: Assume a company had net income of $65,000 that included a gain on the sale of equipment of $4,000.…

A: Net cash provided by operating activities can be found on the statement of cash flows which shows…

Q: Martinez Corporation reported net sales of $769,000, net income of $138,000, and total assets of…

A: The profit margin can be calculated by dividing net income by sales revenue. It indicates the profit…

Q: A company uses the periodic inventory system and had the following activity during the current…

A: INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…

Q: For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income…

A: Profit margin ratio = Net income/Sales Total asset turnover ratio = Sales/Average total assets Total…

Q: Corporation is considering the purchase of a machine that would cost 5220,000 and would last for 6…

A: Net present value describes the amount of profitability generated by an investment and is expressed…

Q: Meester Corporation has an activity-based costing system with three activity cost pools-Machining,…

A: The predetermined overhead rate is used to apply the overhead cost to the production process. The…

Q: Sales: $100 000 Purchase: $45 000 Sales returns: $20 000 Purchase returns: $5 000 Current Assets:…

A: Working capital: Difference between the total current assets and total current liability is called…

Q: Dunbar sold 630 units of inventory during the month. Ending inventory assuming FIFO would be: (Do…

A: Correct option is D. $ 694

Q: Quality data gathering, analysis, and reporting et cost of spoilage Re-entering data because of…

A: External failure costs include a wide range of monetary consequences, such as lawsuits, product…

Q: Year 1 Year 2 YR 1 YR2 Sales (S) $ 614,405.00 $ 600,343.00 Cost…

A: Mark-up percentage refers to the percentage imposed on the cost of the product to have a profit by…

Q: Present and future value tables of $1 at 3% are presented below: FV $1 PV $1 FVA $1 PVA $1 FVAD $1…

A: Amount to be paid in each installment: = Total amount of loan to be repaid / PVA$1(3%, 12 periods)…

Q: Carmel Corporation is considering the purchase of a machine costing $54,000 with a 7-year useful…

A: Lets understand the basics. Accounting rate of return is a net profit generated using average…

Q: On October 28, 2021, a company committed to a plan to sell a division that qualified as a component…

A: An income statement is one that is prepared to determine the net income and loss that the company…

Q: Cushman Company had $842,000 in sales, sales discounts of $12,630, sales returns and allowances of…

A: Gross profit is an excess of revenue over the cost of goods sold. It is the profit before deducting…

Q: Required information [The following information applies to the questions displayed below.] On…

A: A company that has significant influence in another company’s voting stock is known as the Holding…

Q: The following materials standards have been established for a particular product: Standard quantity…

A: Variance analysis is the analysis which helps the manager for having a better control on business.…

Q: Upton Company produces two main products and a by-product out of a joint process. The ratio of…

A: JOINT COST Joint cost is the pre-separation cost of commonly used input factors for the production…

Q: Lost sales due to poor quality Quality data gathering, analysis, and reporting Net cost of spoilage…

A: Other quality-related costs, like prevention costs (incurred to prevent defects) and failure costs…

Q: The balance sheet of Cattleman's Steakhouse shows assets of $104,400 and liabilities of $30,000. The…

A: Goodwill or capital reserves arises on acquisition of business

Q: Marwick Corporation issues 12%, 5 year bonds with a par value of $1,030,000 and semiannual interest…

A: Solution: Bond issue price is calculated as present value of periodic interest and maturity value…

Q: Republic Industries decides to price delivery services according to the results of a recent…

A: Activity-based costing is one wherein the costs are allocated based on specific cost drivers rather…

Q: On November 1, Jasper Company loaned another company $230,000 at a 12.0% interest rate. The note…

A: Solution: Adjusting entries are journal entries usually made at the end of an accounting period to…

Question

microsoft recorded the following selected balances as of June 30, 2022:
Accumulated Depreciation- Office Equipment
Cost of Goods Sold
General & Administrative Expenses
Bill Gates, Withdrawals
Interest Expense
Prepaid Insurance-Office
Sales
1-Gross Profit
2- Net Income
Note: Not all data may be needed
Multiple Choice
(1) Gross Profit $485.000; (2) Net Income $225.000
(1) Gross Profit $410,000; (2) Net Income $300,000
(1) Gross Profit $485,000; (2) Net Income $300.000
(1) Gross Profit $410,000; Net Income: $230,000
$70,000
Sales Discounts
Sales Returns & Allowances
Selling expenses
Based on the data above and assuming Microsoft uses a Multiple-Step income statement
Calculate
(1) Gross Profit $890,000; (2) Net Income $185.000
405,000
100,000
40,000
10,000
5,000
925,000
15,000
20,000
75,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Kingsbury Manufacturing has net sales revenue of $800,000, cost of goods sold of $343,600, and all other expenses of $327,800. The net profit margin is: Multiple Choice 0.37 0.16 0.57 0.84 < Prev Next im 39 of 50
|- Chapter 5 Saved Help N FV $1 PV $1 FVA $1 PVA $1 FVAD $1 PVAD $1 1.03000 0.97087 2 1.06090 0.94260 1.0000 0.97087 1.0300 00000 2.0300 1.91347 2.0909 1.97087 3 1.09273 0.91514 4 1.12551 0.88849 5 1.15927 0.86261 3.0909 2.82861 3.1836 2.91347 4.1836 3.71710 4.3091 3.82861 5.3091 4.57971 5.4684 4.71710 6 1.19405 0.83748 6.4684 5.41719 6.6625 5.57971 6.41719 71.22987 0.81309 8 1.26677 0.78941 9 1.30477 0.76642 | 10.1591 7.6625 6.23028 7.8923 8.8923 7.01969 9.1591 7.23028 7.78611 10.4639 8.01969 10 1.34392 0.74409 11.4639 8.53020 11.8078 8.78611 9.53020 11 |1.38423 0.72242 12 1.42576 0.70138 | 14.1920 13 1.46853 0.68095| 15.6178 10.63496 12.8078 9.25262 13.1920 9.95400 14.6178 10.25262 16.0863 |10.95400 17.5989 11.63496 14 4.51259 0.66112 17.0863 11.29607 15 1.55797 0.64186 19.1569 |12.29607 20.7616 12.93794 18.5989 11.93794 16 1.60471 0.62317| 20.1569 |12.56110 Today. Thomas deposited $190,000 in a 2-year, 12% CD that compounds quarterly. What is the maturity value of the CD?
On January 1, 2021 Tractor Company will acquire a new asset that costs $390,000 and that is anticipated to have a salvage value of $34,000 at the end of four years. The new asset: qualifies as three-year property under the Modified Accelerated Cost Recovery System (MACRS) • will replace an old asset that currently has a tax basis of $96,000 and that can be sold on this date for $76,000 (net of selling costs) • will continue to generate the same operating revenues as the old asset ($130,000 per year). However, it is predicted that savings in cash operating costs will be experienced as follows: a total of $130,000 in each of the first three years, and $91,000 in the fourth year. ● Tractor is subject to a combined income tax rate, t, of 40% and rounds all computations to the nearest dollar. Tractor's fiscal year coincides with the calendar year. Assume that any gain or loss affects the taxes paid at the end of the year in which the gain or loss occurs. The company uses the net present…
TB MC Qu. 10-83 (Algo) The Millard Division's operating... The Millard Division's operating data for the past two years are provided below: Return on investment Net operating income. Turnover Margin Sales Year 1 128 ? ? ? Year 2 36% $ 540,000 3 ? ? $ 3,290,000 Millard Division's margin in Year 2 was 150% of the margin in Year 1. The net operating income for Year 1 was: (Round intermediate percentage computations to the nearest whole percent.)
i need Part B solution Part A here solution Computation of net income: Net sales 680,400 Less: cost of goods sold (327,600) Gross profit 352,800 Less: administrative expense (126,000) Less: selling expense (100,800) Operational income 126,000 Discontinued operations (loss before income tax) (50,400) Income before tax 75,600 Less: income tax (30%) (22,680) Net income 52,920 Hence, net income for 2022 is calculated as €52,920.
Erie Company reports the following comparative balance sheets and income statement information for the current year. All revenues are from credit sales. Comparative Balance Sheets Assets Cash Accounts receivable Prepaid insurance Inventory Property, plant & equipment Total Assets Liabilities and Stockholder's Equity Accounts payable Salaries payable Long-term notes payable Common stock Retained earnings Total Liabilities and Stockholders' Equity Income Statement Revenue Cost of goods sold Gross margin Operating expenses Net income $ What was the cash received from customers during the year? $ 290,000 (162,000) 128,000 (82,000) 46,000 Beginning of Year $ 90,000 34,000 34,000 10,000 42,000 $ 210,000 $ 50,000 18,000 26,000 22,000 94,000 $ 210,000 End of Year $ 50,000 18,000 42,000 26,000 50,000 $ 186,000 $ 34,000 42,000 34,000 22,000 54,000 $ 186,000
Financial information is presented below: Operating expenses $ 33000 Sales revenue 211000 Cost of goods sold 129000 Gross profit would be $178000. $ 82000. $ 33000. $ 49000.
Multiple Choice a. $900. b. $1,400. c. $1,900. d. $2,400. e. $2,600.
If assets are $348,000 and liabilities are $188,000, then equity equals: 3. Multiple Choice 1.66 polnts 02:58:50 $160,000. $188,000. $348,000. $536,000. $884,000. Mc Graw ...
Data for January for Bondi Corporation and its two major business segments, North and South, appear below: Sales revenues, North Variable expenses, North Traceable fixed expenses, North Sales revenues, South Variable expenses, South Traceable fixed expenses, South $ 673,000 $ 390,600 $ 80,600 $ 520,300 $ 296,900 $ 67,400 In addition, common fixed expenses totaled $182,700 and were allocated as follows: $94,900 to the North business segment and $87,800 to the South business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the North business segment is:
A company that was to be liquidated had the following liabilities: Income Taxes Notes Payable secured by land Accounts Payable $ 15,000 120,000 48,000 Salaries Payable ($18,000 for Employee #1 and $5,000 for Employee #2) Administrative expenses for liquidation The company had the following assets: 23,000 Current Assets Land Building Saved 25,000 Book Fair Value Value $130,000 $115,000 60,000 100,000 175,000 220,000 Total liabilities with priority are calculated to be what amount? Multiple Choice О $106,650. $38,000.
Glew Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Cost per Unit $ 6.00 $ 3.35 $ 1.75 $ 1.00 $ 0.40 Cost per Period $ 8,800 Variable administrative expense Fixed selling and administrative expense $ 4,000 If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to: