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 $308,000. 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?
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 $308,000. 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 that Company S uses a periodic or perpetual inventory system to record purchases, freight-in charges, purchase discounts, and purchases returns and allowances.
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 $308,000. 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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Accounting for Merchandising Operations Recording Purchases of Merchandise; Author: Socrat Ghadban;https://www.youtube.com/watch?v=iQp5UoYpG20;License: Standard Youtube License