Question: Krug Service Company Expenses Revenues $9,700 26,000 Owner, Withdrawals 1,400 Cash 900 Prepaid rent 880 Accounts payable 200 Owner, Capital 4,600 Equipment 2,500 Kleiner Merchandising Company Accumulated depreciation $700 Beginning inventory 11,000 Owner, Capital 1,070 Ending inventory 6,600 Operating expenses 2,050 Purchases 13,500 Sales 21,500 Owner, Withdrawals 1,200 Use the above information from a service company and from a merchandiser to compute net income. Compute gross profit, the goods available for sale, and the cost of goods sold for the merchandiser. (Not all information may be necessary).

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question:
Krug Service Company
Expenses
Revenues
$9,700
26,000
Owner, Withdrawals 1,400
Cash
900
Prepaid rent
880
Accounts payable
200
Owner, Capital
4,600
Equipment
2,500
Kleiner Merchandising Company
Accumulated depreciation $700
Beginning inventory
11,000
Owner, Capital
1,070
Ending inventory
6,600
Operating expenses
2,050
Purchases
13,500
Sales
21,500
Owner, Withdrawals
1,200
Use the above information from a service company and from a
merchandiser to compute net income.
Compute gross profit, the goods available for sale, and the cost
of goods sold for the merchandiser. (Not all information may be
necessary).
Transcribed Image Text:Question: Krug Service Company Expenses Revenues $9,700 26,000 Owner, Withdrawals 1,400 Cash 900 Prepaid rent 880 Accounts payable 200 Owner, Capital 4,600 Equipment 2,500 Kleiner Merchandising Company Accumulated depreciation $700 Beginning inventory 11,000 Owner, Capital 1,070 Ending inventory 6,600 Operating expenses 2,050 Purchases 13,500 Sales 21,500 Owner, Withdrawals 1,200 Use the above information from a service company and from a merchandiser to compute net income. Compute gross profit, the goods available for sale, and the cost of goods sold for the merchandiser. (Not all information may be necessary).
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