Appendix 2 PR 5-10B Periodic inventory accounts, multiple-step income statement, closing entries On June 30, 20Y9, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Instructions 1. Does Simkins Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 20Y9. The inventory as of June 30, 20Y9, was $508,000. The estimated cost of customer returns inventory for June 30, 20Y9, is estimated to increase to $33,000. 3. Prepare the closing entries for Simkins Company as of June 30, 20Y9. 4. What would be the net income if the perpetual inventory system had been used?
Appendix 2 PR 5-10B Periodic inventory accounts, multiple-step income statement, closing entries On June 30, 20Y9, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Instructions 1. Does Simkins Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 20Y9. The inventory as of June 30, 20Y9, was $508,000. The estimated cost of customer returns inventory for June 30, 20Y9, is estimated to increase to $33,000. 3. Prepare the closing entries for Simkins Company as of June 30, 20Y9. 4. What would be the net income if the perpetual inventory system had been used?
Solution Summary: The author explains Company S's periodic inventory system and its multi-step income statement for the year ended June 30, 20Y9.
PR 5-10B Periodic inventory accounts, multiple-step income statement, closing entries
On June 30, 20Y9, the balances of the accounts appearing in the ledger of Simkins Company are as follows:
Instructions
1. Does Simkins Company use a periodic or perpetual inventory system? Explain.
2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 20Y9. The inventory as of June 30, 20Y9, was $508,000. The estimated cost of customer returns inventory for June 30, 20Y9, is estimated to increase to $33,000.
3. Prepare the closing entries for Simkins Company as of June 30, 20Y9.
4. What would be the net income if the perpetual inventory system had been used?
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25,621
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13,690
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Sales
94,630
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3,168
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258
60,375
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595
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1,210 1,109
10,000-35
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2,000 14,371
12,490
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8,120 5,045
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8,792
168
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4,290
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payable
4,520
Loan from J. Chandler
2000
62 Inventor
5,000
17,017
Equipment
16,000
period is
1,134
Bank 1500
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5,790
109,522 109,522
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Ans
Chapter 5 Solutions
Financial and Managerial Accounting - Workingpapers
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