On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as follows: $ 13,500 Cash Purchases $2,650,000 Accounts Receivable Purchases Returns and Allowances 72,000 93,000 Merchandise Inventory, Purchases Discounts 37,000 Freight In Sales Salaries Expense Advertising Expense Delivery Expense January 1, 2019 Estimated Returns Inventory 257,000 48,000 35,000 300,000 Office Supplies 3,000 45,000 Prepaid Insurance 4,500 9,000 Land 150,000 Depreciation Expense- Store Equipment Accumulated Depreciation- Store Equipment Miscellaneous Selling Expense Office Salaries Expense 270,000 6,000 12,000 55,900 Store Equipment 175,000 Office Equipment Accumulated Depreciation- Office Equipment Accounts Payable Customer Refunds Payable Salaries Payable 78,500 Rent Expense 28,000 Insurance Expense 3,000 Office Supplies Expense 16,000 2,000 27,800 Depreciation Expense- Office Equipment Miscellaneous Administrative Expense 50,000 1,500 3,000 3,500 Unearned Rent 8,300 Rent Revenue 7,000 Notes Payable Shirley Wyman, Capital Shirley Wyman, Drawing Interest Expense 50,000 2,000 515,600 25,000 Sales 3,280,000 Instructions - Does Wyman Company use a periodic or perpetual inventory system? Explain. 1. 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 2019. The merchandise inventory as of December 31, 2019, was $305,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was $30,000. 3. Prepare the closing entries for Wyman Company as of December 31, 2019. 4. What would the net income have been if the perpetual inventory system had been used?
On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as follows: $ 13,500 Cash Purchases $2,650,000 Accounts Receivable Purchases Returns and Allowances 72,000 93,000 Merchandise Inventory, Purchases Discounts 37,000 Freight In Sales Salaries Expense Advertising Expense Delivery Expense January 1, 2019 Estimated Returns Inventory 257,000 48,000 35,000 300,000 Office Supplies 3,000 45,000 Prepaid Insurance 4,500 9,000 Land 150,000 Depreciation Expense- Store Equipment Accumulated Depreciation- Store Equipment Miscellaneous Selling Expense Office Salaries Expense 270,000 6,000 12,000 55,900 Store Equipment 175,000 Office Equipment Accumulated Depreciation- Office Equipment Accounts Payable Customer Refunds Payable Salaries Payable 78,500 Rent Expense 28,000 Insurance Expense 3,000 Office Supplies Expense 16,000 2,000 27,800 Depreciation Expense- Office Equipment Miscellaneous Administrative Expense 50,000 1,500 3,000 3,500 Unearned Rent 8,300 Rent Revenue 7,000 Notes Payable Shirley Wyman, Capital Shirley Wyman, Drawing Interest Expense 50,000 2,000 515,600 25,000 Sales 3,280,000 Instructions - Does Wyman Company use a periodic or perpetual inventory system? Explain. 1. 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 2019. The merchandise inventory as of December 31, 2019, was $305,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was $30,000. 3. Prepare the closing entries for Wyman Company as of December 31, 2019. 4. What would the net income have been if the perpetual inventory system had been used?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman
Company are as follows:
$ 13,500
Cash
Purchases
$2,650,000
Accounts Receivable
Purchases Returns and Allowances
72,000
93,000
Merchandise Inventory,
Purchases Discounts
37,000
Freight In
Sales Salaries Expense
Advertising Expense
Delivery Expense
January 1, 2019
Estimated Returns Inventory
257,000
48,000
35,000
300,000
Office Supplies
3,000
45,000
Prepaid Insurance
4,500
9,000
Land
150,000
Depreciation Expense-
Store Equipment
Accumulated Depreciation-
Store Equipment
Miscellaneous Selling Expense
Office Salaries Expense
270,000
6,000
12,000
55,900
Store Equipment
175,000
Office Equipment
Accumulated Depreciation-
Office Equipment
Accounts Payable
Customer Refunds Payable
Salaries Payable
78,500
Rent Expense
28,000
Insurance Expense
3,000
Office Supplies Expense
16,000
2,000
27,800
Depreciation Expense-
Office Equipment
Miscellaneous Administrative Expense
50,000
1,500
3,000
3,500
Unearned Rent
8,300
Rent Revenue
7,000
Notes Payable
Shirley Wyman, Capital
Shirley Wyman, Drawing
Interest Expense
50,000
2,000
515,600
25,000
Sales
3,280,000
Instructions
- Does Wyman Company use a periodic or perpetual inventory system? Explain.
1.
2. Prepare a multiple-step income statement for Wyman Company for the year ended
December 31, 2019. The merchandise inventory as of December 31, 2019, was $305,000.
The adjustment for estimated returns inventory for sales for the year ending December
31, 2019, was $30,000.
3. Prepare the closing entries for Wyman Company as of December 31, 2019.
4. What would the net income have been if the perpetual inventory system had been
used?
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