Skysong, Inc. reported these income statement data for a 2-year period. 2022 2021 Sales revenue $255,500 $217,500 Beginning inventory 45,000 32,000 Cost of goods purchased 207,000 189,000 Cost of goods available for sale 252,000 221,000 Less: Ending inventory 55,000 45,000 Cost of goods sold 197,000 176,000 Gross profit $58,500 $41,500 Skysong, Inc. uses a periodic inventory system. The inventories at January 1, 2021, and December 31, 2022, are correct. However, the ending inventory at December 31, 2021, is overstated by $5,000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Skysong, Inc. reported these income statement data for a 2-year period.
2022
2021
Sales revenue
$255,500
$217,500
Beginning inventory
45,000
32,000
Cost of goods purchased
207,000
189,000
Cost of goods available for sale
252,000
221,000
Less: Ending inventory
55,000
45,000
Cost of goods sold
197,000
176,000
Gross profit
$58,500
$41,500
Skysong, Inc. uses a periodic inventory system. The inventories at January 1, 2021, and December 31, 2022, are correct. However,
the ending inventory at December 31, 2021, is overstated by $5,000.
Transcribed Image Text:Current Attempt in Progress Skysong, Inc. reported these income statement data for a 2-year period. 2022 2021 Sales revenue $255,500 $217,500 Beginning inventory 45,000 32,000 Cost of goods purchased 207,000 189,000 Cost of goods available for sale 252,000 221,000 Less: Ending inventory 55,000 45,000 Cost of goods sold 197,000 176,000 Gross profit $58,500 $41,500 Skysong, Inc. uses a periodic inventory system. The inventories at January 1, 2021, and December 31, 2022, are correct. However, the ending inventory at December 31, 2021, is overstated by $5,000.
(a)
Prepare correct income statement data for the 2 years.
2022
2021
Sales
$4
Cost of goods sold
Beginning inventory
Cost of goods purchased
Cost of goods available for sale
Less: Ending inventory
Cost of goods sold
Gross profit
$
%24
%24
%24
%24
Transcribed Image Text:(a) Prepare correct income statement data for the 2 years. 2022 2021 Sales $4 Cost of goods sold Beginning inventory Cost of goods purchased Cost of goods available for sale Less: Ending inventory Cost of goods sold Gross profit $ %24 %24 %24 %24
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