The following selected account data is taken from the records of Reese Industries for 2019. Assume the perpetual inventory system is used. Sales $644,363 Merchandise Inventory 578,620 Sales Discounts 58,000 Interest Expense 3,677 Sales Returns and Allowances 90,232 Interest Revenue 10,268 Cost of Goods Sold 228,598 Rent Expense 15,060 Depreciation Expense-Office Equipment 3,600 Insurance Expense 2,450 Advertising Expense 12,870 Accounts Receivable 100,440 Office Supplies Expense 1,600 Rent Revenue 23,670 Sales Salaries Expense 30,410 Accounts Payable 135,404 Common Stock 59,419 Marketing Expense 31,000 A. Use the data provided to compute net sales for 2019. B. Prepare a simple income statement for the year ended December 31, 2019. C. Compute the gross margin for 2019. D. Prepare a multi-step income statement for the year ended December 31, 2019.
The following selected account data is taken from the records of Reese Industries for 2019. Assume the perpetual inventory system is used. Sales $644,363 Merchandise Inventory 578,620 Sales Discounts 58,000 Interest Expense 3,677 Sales Returns and Allowances 90,232 Interest Revenue 10,268 Cost of Goods Sold 228,598 Rent Expense 15,060 Depreciation Expense-Office Equipment 3,600 Insurance Expense 2,450 Advertising Expense 12,870 Accounts Receivable 100,440 Office Supplies Expense 1,600 Rent Revenue 23,670 Sales Salaries Expense 30,410 Accounts Payable 135,404 Common Stock 59,419 Marketing Expense 31,000 A. Use the data provided to compute net sales for 2019. B. Prepare a simple income statement for the year ended December 31, 2019. C. Compute the gross margin for 2019. D. Prepare a multi-step income statement for the year ended December 31, 2019.
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 15EA: The following select account data is taken from the records of Reese Industries for 2019. A. Use the...
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The following selected account data is taken from the records of Reese Industries for 2019. Assume the perpetual inventory system is used.
Sales | $644,363 |
Merchandise Inventory | 578,620 |
Sales Discounts | 58,000 |
Interest Expense | 3,677 |
Sales Returns and Allowances | 90,232 |
Interest Revenue | 10,268 |
Cost of Goods Sold | 228,598 |
Rent Expense | 15,060 |
3,600 | |
Insurance Expense | 2,450 |
Advertising Expense | 12,870 |
100,440 | |
Office Supplies Expense | 1,600 |
Rent Revenue | 23,670 |
Sales Salaries Expense | 30,410 |
Accounts Payable | 135,404 |
Common Stock | 59,419 |
Marketing Expense | 31,000 |
A. Use the data provided to compute net sales for 2019.
B. Prepare a simple income statement for the year ended December 31, 2019.
C. Compute the gross margin for 2019.
D. Prepare a multi-step income statement for the year ended December 31, 2019.
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