palace made sales of merchandise inventory of $10,000 in 20Y5. The cost of sales for the year was $1,200. Administrative expenses included depreciation on office equipment, $850; insurance expense, $690; and utilities at office, $750. Selling expenses included sales salaries, $2,200; advertising expense, $890; depreciation on store equipment, $1,200; and store rental expense, $3,570. The company also had interest revenue of $3,250. Prepare a multi-step income statement for the company’s fiscal year, which ends September 30.

palace made sales of merchandise inventory of $10,000 in 20Y5. The cost of sales for the year was $1,200. Administrative expenses included depreciation on office equipment, $850; insurance expense, $690; and utilities at office, $750. Selling expenses included sales salaries, $2,200; advertising expense, $890; depreciation on store equipment, $1,200; and store rental expense, $3,570. The company also had interest revenue of $3,250. Prepare a multi-step income statement for the company’s fiscal year, which ends September 30.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...

See similar textbooks

Similar questions

Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
Logo Gear purchased $2,250 worth of merchandise during the month, and its monthly income statement shows cost of goods sold of $2,000. What was the beginning inventory if the ending inventory was $1,000?
Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a cost of goods sold of $3,000. What was the beginning inventory if the ending inventory was $1,250?
The following events occurred at Moore's Hobbies and Crafts store during the most recent fiscal year: Purchased merchandise costing $114,000. Had sales revenue for the year totaling $160,000; the merchandise sold was purchased for $92,500. Paid $10,000 transportation-in costs. Incurred selling and administrative costs equal to 10 percent of sales revenue. All transactions, sales and purchases, were for cash. An inventory account at the end of the year indicated merchandise costing $107,000 was on hand. Required: Give the amounts for the following items in the Merchandise Inventory account: A. Ending Balance B. Transfers-out C. Transfers- in D. Beginning Balance
Diva bee sold $17,790 of merchandise in 20Y5, with the cost of the merchandise totaling $2,250. Fabulous Finds had the following expenses: sales salaries, $2,100; office salaries, $3,000; advertising expense, $1,200; office supplies, $700; office utilities, $1,400; depreciation on store equipment, $1,070; depreciation on office equipment, $1,800; delivery expense, $950; and insurance expense, $1,200. The company also had interest revenue of $2,200 and investment expense of $900. Prepare the company’s income statement for the fiscal year ended March 31.
Y Wholesale Company began the year with merchandise inventory of $9,000. During the year, Y purchased $97,000 of goods and returned $6,300 due to damage. Y also paid freight charges of $1,200 on inventory purchases. At year-end, Y's ending merchandise inventory balance stood at $17,400. Assume that Y uses the periodic inventory system. Compute Y's cost of goods sold for the year.
YE Company ships inventory to its branch at a mark-up of 125% of cost. The required balance of the allowance for overvaluation account is P1,425,000. During the year, the home office sent merchandise to the branch costing P9,000,000. At the start of the year, the branch's Statement of Financial Position shows P1,800,000 of inventory on hand that was acquired from the home office. How much is the amount to be debited to the allowance for overvaluation in branch inventory at the end of the year? A.1,225,000B.2,610,000C.1,425,000D.1,185,000
The net income reported on the income statement for the current year was $73,600. Depreciation recorded on store equipment for the year amounted to $27,400. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of YearCash $23,500 $18,700Accounts receivable (net) 56,000 48,000Merchandise inventory 35,500 40,000Prepaid expenses 4,750 7,000Accounts payable (merchandise…
Savings Company made total purchases of $270,000 in the most current year. It paid freight in of $1,500 on its purchases. Freight out, the cost to deliver the merchandise when it was sold to Savings's customers, totaled $9,600. Of the total purchases Savings made during the period, it returned $24,000 of the merchandise. Savings took advantage of $2,700 of purchase discounts offered by its vendors. What was Savings's cost of inventory? Savings's cost of inventory is
Good Buy Company made total purchases of $270,000 in the most current year. It paid freight in of $1,000 on its purchases. Freight out, the cost to deliver the merchandise when it was sold to Good Buy's customers, totaled $7,200. Of the total purchases Good Buy made during the period, it returned $24,000 of the merchandise. Good Buy took advantage of $2,300 of purchase discounts offered by its vendors. What was Good Buy's cost of inventory?
Sellall Department Stores reported the following amounts as of its December 31 year-end: Administrative Expenses, $2,400; Cost of Goods Sold, $22,728; Income Tax Expense, $3,000; Interest Expense, $1,600; Interest Revenue, $200; General Expenses, $2,600; Net Sales, $37,880; and Delivery (freight-out) Expense, $300. Required: 1. Calculate the gross profit percentage. 2. How has Sellall performed, relative to the 24.5 percent gross profit percentage reported for Walmart in 2019? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)check all that apply Sellall Department Stores earned a higher gross profit percentage than Walmart. Walmart earned a higher gross profit percentage than Sellall Department Stores. Sellall includes more mark-up in the prices it charges customers than Walmart. Walmart includes more mark-up in prices it…
At the beginning of the year, Culver Shipping Ltd., a company that has a perpetual inventory system, had $49,500 of inventory. During the year, inventory costing $198,000 was purchased. Of this, $23,300 was returned to the supplier and a 5% discount was taken on the remainder. Freight costs incurred by the company for inventory purchases amounted to $2,410. The cost of goods sold during the year was $196,400. (a) Determine the balance in the Inventory account at the end of the year. Balance in the inventory account $ eTextbook and Media List of Accounts GA Save for Later Attempts: 0 of 3 used Submit Answer