Problem 4-3A (Static) Computing merchandising amounts and formatting income statements LO C1, P4Required:1. Compute the company's net sales for the year.2. Compute the company's total cost of merchandise purchased for the year.3. Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, andgeneral and administrative expenses.Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Compute the company's net sales for the year.Net SalesSalesNet salesRequired 1Required 2 > Valley Company's adjusted account balances from its general ledger on August 31, its fiscal year-end, follows. Itcategorizes the following accounts as selling expenses: sales salaries expense, rent expense-selling space, storesupplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative.Adjusted Account BalancesMerchandise inventory (ending)Other (non-inventory) assetsTotal liabilitiesCommon stockRetained earningsDividendsSalesSales discountsSales returns and allowancesCost of goods soldSales salaries expenseRent expense-Selling spaceStore supplies expenseAdvertising expenseoffice salaries expenseRent expense-Office spaceoffice supplies expenseTotalsDebit$ 41,000130,400Invoice cost of merchandise purchases.Purchases discounts receivedPurchases returns and allowancesCosts of transportation-in8,0002,25012,00074,50032,0008,0001,50013,00028,5003,600400$ 355,150Credit$ 92,0002,0004,5004,600$ 25,00010,00094,550$ 355,150Beginning merchandise inventory was $25,400. Supplementary records of merchandising activities for the year endedAugust 31 reveal the following itemized costs.225,600

Sales Revenue The amounts received after disposing off the goods either for cash or on account is…

Problem 4-3A (Static) Computing merchandising amounts and formatting income statements LO C1, P4 Required: 1. Compute the company's net sales for the year. 2. Compute the company's total cost of merchandise purchased for the year. 3. Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the company's net sales for the year. Sales Net sales Net Sales

Problem 4-3A (Static) Computing merchandising amounts and formatting income statements LO C1, P4 Required: 1. Compute the company's net sales for the year. 2. Compute the company's total cost of merchandise purchased for the year. 3. Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the company's net sales for the year. Sales Net sales Net Sales

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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Cherokee Incorporated is a merchandiser that provided the following information: Amount 11,000 $ 17 $1 $1 Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a traditional income statement. Cherokee, Incorporated Traditional Income Statement Selling and administrative expenses: $ 18,000 $ 14,000 $ 8,000 $ 25,000 $ 85,000
Beginning inventory Merchandise Finished goods Cost of merchandise purchased Cost of goods manufactured Ending inventory Unimart $ 342,000 440,000 Bare Manufacturing 242,000 $ 684,000 800, 000 Merchandise Finished goods Compute cost of goods sold for each of these two companies. 236,000
Question 23
Which of the following combinations of equations calculates the Cost of Goods Sold for a period in which sales and purchases were made? i Opening Stock ii Closing Stock iii Purchases for the period iv Goods available for sale Question 8 Select one: a. i - ii b. iv - ii c. iv - iii d. i + iii-ii + ive. None of the above
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McNeil Merchandising Company Accumulated depreciation Beginning inventory Ending inventory Expenses Net purchases Net sales Krug Service Company Expenses Revenues Cash Prepaid rent Accounts payable Equipment $ 12,500 14,000 700 800 200 1,300 $ 700 5,000 1,700 1,450 3,900 9,500 a. Compute the goods available for sale, the cost of goods sold and gross profit for the merchandiser. Hint. Not all information may be necessary. b. Compute net income for each company. a. Goods available for sale a. Cost of goods sold a. Gross profit b. Net income for Krug Service Company b. Net income for McNeil Merchandising Company
for each of the following cost flow assumptions, calculate cost of goods sold, ending inventory and gross profit 1 lifo 2 fifo moving average cost Question 6 of 7 Sheffield Inc. is a retailer operating in British Columbia. Sheffield uses the perpetual inventory system. All sales returns from customers result in the goods being returned to inventory; the inventory is not damaged. Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for Sheffield Inc. for the month of January 2022. Date January 1 Beginning inventory January 5 Purchase January 8 January 10 January 15 January 16 January 20 January 25 (a1) January 1 - Your answer is partially correct. January 5 January 8 January 10 January 15 Question 6 of 7 ya January 15 January 16 January 20 January 25 eTextbook Save for Later (a2) Calculate the Moving-average cost per unit at January 1, 5, 8, 10, 15, 16, 20, & 25. (Round moving-average cost per unit answers to 3…
Vaibhav Subject: accounting
income statement for merchandisingbusiness using the function of expense form May someone please help me
2
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Question:2 3M reports following for the month of April. Unit cost or selling price Date Explanation Units 1-Apr Inventory 120 65 7-Apr Purchase 70 75 12-Apr Sale 60 130 22-Apr Purchase 70 85 25-Apr Sale 40 140 30-Apr Inventory 160 a) For each of the following assumptions, calculate (i) ending inventory, (ii) cost of goods sold & (iii) gross profit. [3*3] 1. FIFO 2. LIFO 3. Average cost b) Which method gives higher net income? Why? [0.5] c) Which method results in the higher income taxes? Why? [0.5]