On December 31, 2020, the balances of the accounts appearing in the ledger of Home City Furnishings Company, a furniturewholesaler, are as follows:Rent revenue$11,000Accounts receivable500,000Administrative expenses200,000Sales returns and allowances200,000Sales discounts50,000Selling expenses250,000Sales3,500,000Cash530,000Cost of merchandise sold1,600,000Interest expense6,000Prepare a multi-step income statement for the year ended December 31, 2020.Home City FurnishingsIncome StatementFor the Year Ended December 31, 2020

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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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The Company has a single branch in Southwest. On March 1, 2020, the home ofﬁce accounting records included an Allowance for Overvaluation of Inventories: Southwest Branch ledger account with a credit balance of $32,000. During March, the following transactions occurred: On March 4, the home office shipped merchandise costing $66,000 to the Southwest Branch and billed it at a price representing a 40% markup on the billed price.On March 8, the branch sold 70% of the merchandise received from the home office on march 4 for $90,000 cash.On March 15, the branch sold 20% of the merchandise received from the home office on march 4 to Hope company for $30,000 on credit.On March 22, the home office informed the branch that it had collected 50% of the amount owed by Hope company.On March 28, the branch paid operating expenses of $10,000 cash.On March 29, Hope company paid the remaining amount due to Southwest branch,On March 30, the home office allocated operating expenses of $4,000 to the…
Compute for the net sales that would be reported in LIVA company's Income Statemen
During August, 2020, Sheffield’s Supply Store generated net sales of $60100. The company’s expenses were as follows: cost of goods sold of $35000 and operating expenses of $4500. The company also had rent revenue of $1000 and a loss on the sale of a delivery truck of $1700. Sheffield’s operating income for the month of August 2020 is $20600.$21600.$19900.$25100.
Compute for the net sales that would be reported in LIVA company's Income Statement. You are assigned to prepare the financial statements of LIVA Company for the year 2021. The following data were made available for you: Ending Inventory at Cost 739,160 3,930,000 16,000 Goods Available for Sale at retail Sales Discount Net markdowns 48,500 Net markups 30,000 1,450,000 2,422,000 Beginning inventory at retail Purchases at retail The company adopts the ayverage cost approach to estimate the value of its inventory and the cost ratio is computed at 68%.
The following information is available for Jaworski second year in business: • Opening merchandise inventory is 35,000. • Goods are marked to sell at 35% above cost. • Merchandise purchased totalled 600,000. • Collections from customers are 420,000. • Ending merchandise inventory is 225,000. • Opening accounts receivable balance is 0. • Ending accounts receivable balance is 85,000. Required: a. Estimate the ending accounts receivable that should appear in the ledger. Calculate any shortages, if any. Assume that all sales are made on account. b. What controls can be put in place to prevent theft?
Prepare an income statement for Hansen Realty for the year ended December 31, 2023. Beginning inventory was $1,244. Ending inventory was $1,596. Note: Input all amounts as positive values. Sales $ 34,500 Sales returns and allowances 1,088 Sales discount 1,148 Purchases 10,312 Purchase discounts 536 Depreciation expense 111 Salary expense 5,000 Insurance expense 2,400 Utilities expense 206 Plumbing expense 246 Rent expense 176
Ayayai Company had the following account balances at year-end: Cost of Goods Sold $63,840; Inventory $14,610; Operating Expenses $30,650; Sales Revenue $121,130; Sales Discounts $1,130; and Sales Returns and Allowances $1,850. A physical count of inventory determines that merchandise inventory on hand is $13,080.
Presented below is information related to Tamarisk Corporation for the month of January 2020. Cost of goods sold $207,710 Salaries and wages expense $62,790 Delivery expense 6,520 Sales discounts 7,470 Insurance expense 11,170 Sales returns and allowances 11,870 Rent expense 20,580 Sales revenue 356,700 Prepare the necessary closing entries.
13. Presented below is information for OB Company for the month of April 2019. Cost of goods sold $106,000 Rent expense $ 16,000 Freight-out 3,500 Sales discounts 4,000 Insurance expense 6,000 Sales returns and allowances 6,500 Salary expense 29,000 Sales 185,000 Instructions (a) Prepare a multiple-step income statement. (b) Compute the gross profit rate.
10) The company recorded cash sales for an additional 12) 20 pairs of shoes for $65 each on the 24th of the month. 11) On the last day of the month, the company estimated sales returns for their sales. They estimate that 2% of sales will be returned. (Hint: use total sales from above) Prepare the appropriate journal entries for each transaction under a perpetual inventory system.

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