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Pharoah Company began operating on October 1, 2022. It prepares monthly financial statements. A tabular summary including information as of December 1, 2022, is shown below in the instructions. Note that the Inventory balance of $2,340 is based on 3, units costing $0.60 per unit. Also, the $22,10 balance in Retained Earnings represents the results for the first two months of operations. The following transactions occurred during December. Dec. Purchased 5,200 units of Inventory on account at a cost of $0.70 per unit. Sold 5,720 units of inventory on account for $0.90 per unit. (Pharoah sold 3,900 of the $0.60 units and 1,820 of the $0.70.)

Pharoah Company began operating on October 1, 2022. It prepares monthly financial statements. A tabular summary including information as of December 1, 2022, is shown below in the instructions. Note that the Inventory balance of $2,340 is based on 3, units costing $0.60 per unit. Also, the $22,10 balance in Retained Earnings represents the results for the first two months of operations. The following transactions occurred during December. Dec. Purchased 5,200 units of Inventory on account at a cost of $0.70 per unit. Sold 5,720 units of inventory on account for $0.90 per unit. (Pharoah sold 3,900 of the $0.60 units and 1,820 of the $0.70.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Pharoah Company began operating on October 1, 2022. It prepares monthly financial statements. A tabular summary including information as of December 1, 2022, is shown below in the instructions. Note that the Inventory balance of $2,340 is based on 3,900 units costing $0.60 per unit. Also, the $22,100 balance in Retained Earnings represents the results for the first two months of operations. The following transactions occurred during December. Dec. Purchased 5,200 units of Inventory on account at a cost of $0.70 per unit. 3 Sold 5,720 units of inventory on account for $0.90 per unit. (Pharoah sold 3,900 of the $0.60 units and 1,820 of the $0.70.) 7 Granted the December 5 customer $234 credit for 260 units of inventory returned costing $190. These units were returned to inventory. 17 Purchased 2,860 units of inventory for cash at $0.80 each. 22 Sold 2,600 unit of inventory on account for $0.95 per unit. (Pharoah sold 2,600 of the $0.70 units.) Adjustment data: 1. Accrued salaries and wages payable $520. 2. Depreciation on equipment $260 per month. 3. Income tax expense was $282, to be paid next year.
Transcribed Image Text:Pharoah Company began operating on October 1, 2022. It prepares monthly financial statements. A tabular summary including information as of December 1, 2022, is shown below in the instructions. Note that the Inventory balance of $2,340 is based on 3,900 units costing $0.60 per unit. Also, the $22,100 balance in Retained Earnings represents the results for the first two months of operations. The following transactions occurred during December. Dec. Purchased 5,200 units of Inventory on account at a cost of $0.70 per unit. 3 Sold 5,720 units of inventory on account for $0.90 per unit. (Pharoah sold 3,900 of the $0.60 units and 1,820 of the $0.70.) 7 Granted the December 5 customer $234 credit for 260 units of inventory returned costing $190. These units were returned to inventory. 17 Purchased 2,860 units of inventory for cash at $0.80 each. 22 Sold 2,600 unit of inventory on account for $0.95 per unit. (Pharoah sold 2,600 of the $0.70 units.) Adjustment data: 1. Accrued salaries and wages payable $520. 2. Depreciation on equipment $260 per month. 3. Income tax expense was $282, to be paid next year.
PHAROAH COMPANY Income Statement For the Month Ended December 31, 2022 eTextbook and Medla List of Accounts Save for Later Attempts: 0 of5 used Submit Answer
Transcribed Image Text:PHAROAH COMPANY Income Statement For the Month Ended December 31, 2022 eTextbook and Medla List of Accounts Save for Later Attempts: 0 of5 used Submit Answer
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