On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Cash $125,000 Purchases $4,100,000 Accounts Receivable 340,000 Purchases Returns and Allowances 32,000 Merchandise Inventory, July 1, 2018 415,000 Purchases Discounts 13,000 Estimated Returns Inventory 25,000 Freight In 45,000 Office Supplies 9,000 Sales Salaries Expense 580,000 Prepaid Insurance 18,000 Advertising Expense 315,000 Land 300,000 Delivery Expense 18,000 Store Equipment 550,000 Depreciation Expense-Store Equipment 12,000 Accumulated Depreciation-Store Equipment 190,000 Miscellaneous Selling Expense 28,000 Office Equipment 250,000 Office Salaries Expense 375,000 Accumulated Depreciation-Office Equipment 110,000 Rent Expense 43,000 Accounts Payable 85,000 Insurance Expense 17,000 Customer Refunds ayable 20,000 Office Supplies Expense 5,000 Salaries Payable 9,000 Depreciation Expense-Office Equipment 4,000 Unearned Rent 6,000 Miscellaneous Administrative Expense 16,000 Notes Payable 50,000 Rent Revenue 32,500 Amy Gant, Capital 820,000 Interest Expense 2,500 Amy Gant, Drawing 275,000 Sales 6,590,000 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 2019. The merchandise inventory as of June 30, 2019, was $508,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was $33,000. Simkins Company Income Statement For the Year Ended June 30, 2019 Sales v Cost of merchandise sold: Merchandise inventory, July 1, 2018 V Cost of merchandise purchased: Purchases V Purchases returns and allowances v Purchases discounts v Net purchases v Freight inFreight in v Total Cost of merchandise purchased v Merchandise available for sale v Merchandise inventory, June 30, 2019 v Cost of merchandise sold before estimated returns v Increase in estimated returns inventory v Cost of merchandise sold v Gross profit v
On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Cash $125,000 Purchases $4,100,000 Accounts Receivable 340,000 Purchases Returns and Allowances 32,000 Merchandise Inventory, July 1, 2018 415,000 Purchases Discounts 13,000 Estimated Returns Inventory 25,000 Freight In 45,000 Office Supplies 9,000 Sales Salaries Expense 580,000 Prepaid Insurance 18,000 Advertising Expense 315,000 Land 300,000 Delivery Expense 18,000 Store Equipment 550,000 Depreciation Expense-Store Equipment 12,000 Accumulated Depreciation-Store Equipment 190,000 Miscellaneous Selling Expense 28,000 Office Equipment 250,000 Office Salaries Expense 375,000 Accumulated Depreciation-Office Equipment 110,000 Rent Expense 43,000 Accounts Payable 85,000 Insurance Expense 17,000 Customer Refunds ayable 20,000 Office Supplies Expense 5,000 Salaries Payable 9,000 Depreciation Expense-Office Equipment 4,000 Unearned Rent 6,000 Miscellaneous Administrative Expense 16,000 Notes Payable 50,000 Rent Revenue 32,500 Amy Gant, Capital 820,000 Interest Expense 2,500 Amy Gant, Drawing 275,000 Sales 6,590,000 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 2019. The merchandise inventory as of June 30, 2019, was $508,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was $33,000. Simkins Company Income Statement For the Year Ended June 30, 2019 Sales v Cost of merchandise sold: Merchandise inventory, July 1, 2018 V Cost of merchandise purchased: Purchases V Purchases returns and allowances v Purchases discounts v Net purchases v Freight inFreight in v Total Cost of merchandise purchased v Merchandise available for sale v Merchandise inventory, June 30, 2019 v Cost of merchandise sold before estimated returns v Increase in estimated returns inventory v Cost of merchandise sold v Gross profit v
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as follows:
Cash
$125,000 Purchases
$4,100,000
Accounts Receivable
340,000 Purchases Returns and Allowances
32,000
Merchandise Inventory, July 1, 2018
415,000 Purchases Discounts
13,000
Estimated Returns Inventory
25,000 Freight In
45,000
Office Supplies
9,000 Sales Salaries Expense
580,000
Prepaid Insurance
18,000 Advertising Expense
315,000
Land
300,000 Delivery Expense
18,000
Store Equipment
550,000 Depreciation Expense-Store Equipment
12,000
Accumulated Depreciation-Store Equipment
190,000 Miscellaneous Selling Expense
28,000
Office Equipment
250,000 Office Salaries Expense
375,000
Accumulated Depreciation-Office Equipment
110,000 Rent Expense
43,000
Accounts Payable
85,000 Insurance Expense
17,000
Customer Refunds
ayable
20,000 Office Supplies Expense
5,000
Salaries Payable
9,000 Depreciation Expense-Office Equipment
4,000
Unearned Rent
6,000 Miscellaneous Administrative Expense
16,000
Notes Payable
50,000 Rent Revenue
32,500
Amy Gant, Capital
820,000 Interest Expense
2,500
Amy Gant, Drawing
275,000
Sales
6,590,000
Transcribed Image Text:2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 2019. The merchandise inventory as of June 30, 2019, was $508,000.
The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was $33,000.
Simkins Company
Income Statement
For the Year Ended June 30, 2019
Sales v
Cost of merchandise sold:
Merchandise inventory, July 1, 2018 V
Cost of merchandise purchased:
Purchases V
Purchases returns and allowances v
Purchases discounts v
Net purchases v
Freight inFreight in v
Total Cost of merchandise purchased v
Merchandise available for sale v
Merchandise inventory, June 30, 2019 v
Cost of merchandise sold before estimated returns v
Increase in estimated returns inventory v
Cost of merchandise sold v
Gross profit v
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