The following summarized data were provided by the records of Mystery IncorporAdministrative ExpenseCost of Goods SoldIncome Tax ExpenseSales Returns and Allowances42Selling ExpenseSales of merchandise for cashSales of merchandise on credites$23,000185,00021,6009,00048,200340,00052,000Required:1. Based on these data, prepare a multi-step income statement for internal reportinMYSTERY INCORPORATEDIncome StatementFor the Year Ended December 31Sales revenueSales returns and allowancesNet salesCost of goods soldGA$392,0009,000383,000185,000

The objective of the question is to prepare a multi-step income statement for Mystery Incorporated…

Answered: The following summarized data were…

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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Computing Gross Profit The following data were taken from the accounts of Fluter Hardware, a small retail business. Sales $120,700 Sales returns and allowances 810 Sales discounts 680 Merchandise inventory, January 1 34,800 Purchases during the period 77,000 Purchases returns and allowances during the period 3,840 Purchases discounts taken during the period 2,310 Freight-in on merchandise purchased during the period 1,390 Merchandise inventory, December 31 31,500 Determine the gross profit.
Compute for the net sales that would be reported in LIVA company's Income Statement. You are assigned to prepare the financial statements of LIVA Company for the year 2021. The following data were made available for you: Ending Inventory at Cost 739,160 3,930,000 16,000 Goods Available for Sale at retail Sales Discount Net markdowns 48,500 Net markups 30,000 1,450,000 2,422,000 Beginning inventory at retail Purchases at retail The company adopts the ayverage cost approach to estimate the value of its inventory and the cost ratio is computed at 68%.
Multiple-Step Income Statement Use the following information to prepare a multiple-step income statement, including the revenue section and the cost of goods sold section, for Sauter Office Supplies for the year ended December 31, 20--. Sales $160,000 Sales Returns and Allowances 2,300 Sales Discounts 4,175 Interest Revenue 425 Merchandise Inventory, January 1, 20-- 28,400 Estimated Returns Inventory, January 1, 20-- 600 Purchases 109,000 Purchases Returns and Allowances 4,560 Purchases Discounts 2,670 Freight-In 895 Merchandise Inventory, December 31, 20-- 30,100 Estimated Returns Inventory, December 31, 20-- 900 Wages Expense 27,400 Supplies Expense 800 Phone Expense 800 Utilities Expense 8,000 Insurance Expense 1,200 Depreciation Expense—Equipment 3,900 Miscellaneous Expense 590 Interest Expense 4,700 Sauter Office Supplies Income Statement For Year Ended December 31, 20-- Revenue from sales: $ $…
Using the following information, what is the amount of net income? Purchases $ 25,599 Selling expenses $ 838 Merchandise inventory, September 1 6,382 Merchandise inventory, September 30 11,356 Administrative expenses 765 Sales 47,294 Rent revenue 908 Interest expense 1,144 O a. $27,118 Ob. $24,830 Oc. S18,448 Od. S36,186
Record the following selected transactions: a. Sold $900 of merchandise on account, subject to 7% sales tax. The cost of the goods sold was $510. b. Paid $436 to the state sales tax department for taxes collected. Required: Journalize the entries. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Inventory 131 Estimated Returns Inventory 140 Supplies 142 Prepaid Insurance 180 Land 190 Equipment 191 Accumulated Depreciation LIABILITIES 210 Accounts Payable 216 Salaries Payable 221 Sales Tax Payable 222 Customers Refunds Payable 231 Unearned Rent 241 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends REVENUE 410 Sales EXPENSES 510 Cost of Goods Sold 521 Delivery Expense 522…
Use the following to answer questions 6 – 7 MC, Inc., reported the following amounts at the end of the year: Total sales $888,000 Accounts receivable Sales allowances 60,000 3,500 Allowance for Uncollectible accounts 1,400 Sales discounts 18,000 9,000 Sales returns Determine total contra revenues for $ the company 6. 7. $ Determine net sales for the company
Journalize the following transactions for Jackson Company using the gross method of accounting for sales discounts. Assume a perpetual inventory system. Also, assume a constant gross profit ratio for all items sold. Make sure to enter the day for each separate transaction. Sold goods costing $5,400 to Lewis Company on account, $9,000, terms 5/10, n/30. March 2 March 8 Lewis Company was granted an allowance of $540 for returned merchandise that was previously purchased on account. The returned goods are in perfect condition. March 13 Received the amount due from Lewis Company. Date Account Title Debit Credit
Using the accounts and amounts below, calculate Net Sales: Account Amount Sales Revenue $142,055 Purchase Discounts 1,886 Sales Discounts Sales Returns and Allowances 2,881 2,515 Cost of Goods Sold 40,889
The following are accounts taken from the books of WEI LONG TRADING for year ended December 31, 2021. Prepare a multi-step income statement based on the given facts with corresponding notes. Sales Purchases Merchandise Inventory, Jan. 1 Sales Return & Allowances Sales Discount Purchases Return & Allowances Purchases Discount Freight In Merchandise Inventory, Dec. 31 Advertising expense Sales Salaries Freight-out Utilities Expense - Store 450,000 284,000 80,000 18,000 12,000 2,800 14,000 12,000 6,000 88,000 18,000 74,000 14,200 Utilities Expense - Office Office Supplies Doubtful accounts Expense Dividends Income Rent Income Interest Expense Discount Lost Store supplies Office Salaries 4,800 2,400 7,200 50,000 40,000 16,000 1,600 6,000 22,000
Required information The following information applies to the questions displayed below.] The following data were provided by Mystery Incorporated for the rear ended December 31: Cost of Goods Sold Income Tax Expense Merchandise Sales (gross revenue) for Cash Merchandise Sales (gross revenue) on Credit Office Expense Sales Returns and Allowances Salaries and Wages Expense $ 171,000 19,530 252,000 44,400 19,600 7,410 42,600 the gross profit percentage in the current year improve, or decline, relative to 39% gross profit percentage in the prior year? > Improve > Decline

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