The owner of a local souvenir shop in Murrells Inlet is in the process of preparing an income statement at the end of the first t year of operation. Because it is the first year of operation, there was no inventory at the beginning of the year. Given the following information: Merchandise Inventory - end of year $20,000 Purchases $100,000 Freight-in $4,000% Sales $200,000 Property Taxes - Store $8,000 Depreciation-Store $25,000 Insurance-Store $7,000 Salary-Sales Staff $20,000 Advertising $5,000 What is the g gross margin?

The owner of a local souvenir shop in Murrells Inlet is in the process of preparing an income statement at the end of the first t year of operation. Because it is the first year of operation, there was no inventory at the beginning of the year. Given the following information: Merchandise Inventory - end of year $20,000 Purchases $100,000 Freight-in $4,000% Sales $200,000 Property Taxes - Store $8,000 Depreciation-Store $25,000 Insurance-Store $7,000 Salary-Sales Staff $20,000 Advertising $5,000 What is the g gross margin?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...

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The owner of a local souvenir shop in Murrells Inlet is in the process of preparing an income statement at the end of the first year of operation. Because it is the first year of operation, there was no inventory at the beginning of the year. Given the following information: Merchandise Inventory - end of year $20,000 Purchases $100,000 Freight in $4,000 Sales $200,000 Property Taxes - Store $8,000 Depreciation Store $25,000 Insurance - Store $7,000 Salary Sales Staff $20,000 Advertising $5,000 What is the gross margin?
Y Wholesale Company began the year with merchandise inventory of $9,000. During the year, Y purchased $97,000 of goods and returned $6,300 due to damage. Y also paid freight charges of $1,200 on inventory purchases. At year-end, Y's ending merchandise inventory balance stood at $17,400. Assume that Y uses the periodic inventory system. Compute Y's cost of goods sold for the year. Less: Plus: Less: Cost of Goods Sold
At the end of the year, the following adjustments (a)–(j) need to be made: (a, b) Merchandise inventory as of December 31, $19,700.(c, d, e) Jones estimates that customers will be granted $400 in refunds of this year’s sales next year, and the merchandise expected to be returned will have a cost of $300.(f) Unused supplies on hand, $525.(g) Unexpired insurance on December 31, $1,000.(h) Depreciation expense on the building for the year, $800.(i) Depreciation expense on the store equipment for the year, $450.(j) Wages earned but not paid as of December 31, $330.journalise and post adjusting entries.
Freedman Company estimates that sales this year of $12,000 will be returned next year and customers will be granted a full refund. Which of the following journal entries would Freedman Company record as part of its year-end adjustments assuming it uses the perpetual inventory system? a.Debit Estimated Returns Inventory for $12,000 and credit Income Summary for $12,000 b.Debit Sales Returns and Allowances for $12,000 and credit Cost of Goods Sold for $12,000 c.Debit Inventory Short and Over for $12,000 and credit Merchandise Inventory for $12,000 d.Debit Sales Returns and Allowances for $12,000 and credit Customer Refunds Payable for $12,000
Patricia Flynn owns a business called Patty's Place. The company uses a periodic inventory system. The beginning inventory balance was $31,000. A physical count determined her ending inventory was $25,000. Based on past experience, Patricia estimates that $3,000 of sales from this year will be returned next year. The cost of the merchandise expected to be returned is $900. Which of the following journal entries would record the ending inventory? a.Debit Income Summary for $25,000 and credit Merchandise Inventory for $25,000 b.Debit Income Summary for $6,000 and credit Merchandise Inventory for $6,000 c.Debit Merchandise Inventory for $6,000 and credit Cost of Goods Sold for $6,000 d.Debit Merchandise Inventory for $25,000 and credit Income Summary for $25,000
Y Wholesale Company began the year with merchandise inventory of $9,000. During the year, Y purchased $97,000 of goods and returned $6,300 due to damage. Y also paid freight charges of $1,200 on inventory purchases. At year-end, Y's ending merchandise inventory balance stood at $17,400. Assume that Y uses the periodic inventory system. Compute Y's cost of goods sold for the year.
Bell Inc. took a physical inventory at the end of the year and determined that $780k of goods were on hand. In addition, Bell Inc., determined that $60k of goods that were in transit that were shipped F.O.B. shipping point were actually received two days after the inventory count and that the company had $90k of goods out on consignment. What amount should Bell report as inventory at the end of the year? a.) 780k b.) 860k c.) 870k d.) 930k
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