On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as follows: Cash $13,500 Accounts Receivable 72,000 Merchandise Inventory, January 1, 2019 257,000 Estimated Returns Inventory 35,000 Office Supplies 3,000 Prepaid Insurance 4,500 Land 150,000 Store Equipment 270,000 Accumulated Depreciation-Store Equipment 55,900 Office Equipment 78,500 Accumulated Depreciation-Office Equipment 16,000 Accounts Payable 27,800 Customer Refunds Payable 50,000 Salaries Payable 3,000 Unearned Rent 8,300 Notes Payable 50,000 Shirley Wyman, Capital 515,600 Shirley Wyman, Drawing 25,000 Sales 3,280,000 Purchases 2,650,000 Purchases Returns and Allowances 93,000 Purchases Discounts 37,000 Freight In 48,000 Sales Salaries Expense 300,000 Advertising Expense 45,000 Delivery Expense 9,000 Depreciation Expense-Store Equipment 6,000 Miscellaneous Selling Expense 12,000 Office Salaries Expense 175,000 Rent Expense 28,000 Insurance Expense 3,000 Office Supplies Expense 2,000 Depreciation Expense-Office Equipment 1,500 Miscellaneous Administrative Expense 3,500 Rent Revenue 7,000 Interest Expense 2,000 Required: 1. Does Wyman Company use a periodic inventory system or perpetual inventory system? Which account listed would not be used under both inventory systems? 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 2019. Be sure to complete the heading of the statement. 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. Refer to the chart of accounts and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. “Less”, “Add” or colons (:) will automatically appear if required. In the Other revenue and expenses section only, enter amounts that represent other expenses as negative numbers using a minus sign. 3. Prepare the closing entries for Wyman Company as of December 31, 2019. Refer to the Chart of Accounts for exact wording of account titles. 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: Cash $13,500 Accounts Receivable 72,000 Merchandise Inventory, January 1, 2019 257,000 Estimated Returns Inventory 35,000 Office Supplies 3,000 Prepaid Insurance 4,500 Land 150,000 Store Equipment 270,000 Accumulated Depreciation-Store Equipment 55,900 Office Equipment 78,500 Accumulated Depreciation-Office Equipment 16,000 Accounts Payable 27,800 Customer Refunds Payable 50,000 Salaries Payable 3,000 Unearned Rent 8,300 Notes Payable 50,000 Shirley Wyman, Capital 515,600 Shirley Wyman, Drawing 25,000 Sales 3,280,000 Purchases 2,650,000 Purchases Returns and Allowances 93,000 Purchases Discounts 37,000 Freight In 48,000 Sales Salaries Expense 300,000 Advertising Expense 45,000 Delivery Expense 9,000 Depreciation Expense-Store Equipment 6,000 Miscellaneous Selling Expense 12,000 Office Salaries Expense 175,000 Rent Expense 28,000 Insurance Expense 3,000 Office Supplies Expense 2,000 Depreciation Expense-Office Equipment 1,500 Miscellaneous Administrative Expense 3,500 Rent Revenue 7,000 Interest Expense 2,000 Required: 1. Does Wyman Company use a periodic inventory system or perpetual inventory system? Which account listed would not be used under both inventory systems? 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 2019. Be sure to complete the heading of the statement. 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. Refer to the chart of accounts and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. “Less”, “Add” or colons (:) will automatically appear if required. In the Other revenue and expenses section only, enter amounts that represent other expenses as negative numbers using a minus sign. 3. Prepare the closing entries for Wyman Company as of December 31, 2019. Refer to the Chart of Accounts for exact wording of account titles. 4. What would the net income have been if the perpetual inventory system had been used?

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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On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as follows:

Cash	$13,500
Accounts Receivable	72,000
Merchandise Inventory, January 1, 2019	257,000
Estimated Returns Inventory	35,000
Office Supplies	3,000
Prepaid Insurance	4,500
Land	150,000
Store Equipment	270,000
Accumulated Depreciation-Store Equipment	55,900
Office Equipment	78,500
Accumulated Depreciation-Office Equipment	16,000
Accounts Payable	27,800
Customer Refunds Payable	50,000
Salaries Payable	3,000
Unearned Rent	8,300
Notes Payable	50,000
Shirley Wyman, Capital	515,600
Shirley Wyman, Drawing	25,000
Sales	3,280,000
Purchases	2,650,000
Purchases Returns and Allowances	93,000
Purchases Discounts	37,000
Freight In	48,000
Sales Salaries Expense	300,000
Advertising Expense	45,000
Delivery Expense	9,000
Depreciation Expense-Store Equipment	6,000
Miscellaneous Selling Expense	12,000
Office Salaries Expense	175,000
Rent Expense	28,000
Insurance Expense	3,000
Office Supplies Expense	2,000
Depreciation Expense-Office Equipment	1,500
Miscellaneous Administrative Expense	3,500
Rent Revenue	7,000
Interest Expense	2,000

	Required:
1.	Does Wyman Company use a periodic inventory system or perpetual inventory system? Which account listed would not be used under both inventory systems?
2.	Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 2019. Be sure to complete the heading of the statement. 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. Refer to the chart of accounts and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. “Less”, “Add” or colons (:) will automatically appear if required. In the Other revenue and expenses section only, enter amounts that represent other expenses as negative numbers using a minus sign.
3.	Prepare the closing entries for Wyman Company as of December 31, 2019. Refer to the Chart of Accounts for exact wording of account titles.
4.	What would the net income have been if the perpetual inventory system had been used?

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