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Only answer part D and part E

Only answer part D and part E

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter7: Accounting Information Systems
Section: Chapter Questions
Problem 17MC: Sold goods for $650, credit terms net 30 days. Which journal would the company use to record this...
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Only answer part D and part E

Question 1 The following information is taken from the General Ledger of Ben's BMX Bikes at September 30, 2018. Accounts payable 3,900 Accounts receivable 2,150 B. Toews, Capital 6,920 B. Toews, Drawings 5,000 Cash 1,180 Cost of goods sold 45,800 Freight-out expense 1,000 Insurance expense 720 Merchandise inventory 5,800 Rent expense 4,800 Salaries expense 12,620 Sales revenue 68,500 Sales returns and allowances 250 A physical count of the inventory indicates that the actual amount on had is $5,450. Ben's uses the perpetual inventory system. Instructions (a) Prepare the journal entry to adjust inventory. (b) Prepare the closing entries. (c) Prepare the post-closing trial balance. (d) Prepare a multiple-step income statement. (e) Calculate Ben's gross profit margin.
Transcribed Image Text:Question 1 The following information is taken from the General Ledger of Ben's BMX Bikes at September 30, 2018. Accounts payable 3,900 Accounts receivable 2,150 B. Toews, Capital 6,920 B. Toews, Drawings 5,000 Cash 1,180 Cost of goods sold 45,800 Freight-out expense 1,000 Insurance expense 720 Merchandise inventory 5,800 Rent expense 4,800 Salaries expense 12,620 Sales revenue 68,500 Sales returns and allowances 250 A physical count of the inventory indicates that the actual amount on had is $5,450. Ben's uses the perpetual inventory system. Instructions (a) Prepare the journal entry to adjust inventory. (b) Prepare the closing entries. (c) Prepare the post-closing trial balance. (d) Prepare a multiple-step income statement. (e) Calculate Ben's gross profit margin.
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