Multi step income statement: A multiple step income statement refers to the income statement that shows the operating, and non-operating activities of the business, under separate head. In different steps of the multi-step income statement, principal operating activities are reported that starts from the record of sales revenue with all contra sales revenue account like sales returns, allowances and sales discounts. To Explain: Whether Company S use a periodic inventory system or perpetual inventory system.

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Answer 1

Question

Chapter 5, Problem 5.10BPR

(1)

To determine

Multi step income statement: A multiple step income statement refers to the income statement that shows the operating, and non-operating activities of the business, under separate head. In different steps of the multi-step income statement, principal operating activities are reported that starts from the record of sales revenue with all contra sales revenue account like sales returns, allowances and sales discounts.

To Explain: Whether Company S use a periodic inventory system or perpetual inventory system.

(2)

To determine

To Prepare: The income statement of Company S for the year ended June 30, 2016.

3.

To determine

Closing entries: These refers to the journal entries that are recorded at the end of an each accounting period. It closes all revenue accounts earned, and all expenses account incurred during the current accounting year to the company’s capital account.

To Record: The closing entries of Company S.

4.

To determine

To Mention: The net income of W Company under the perpetual inventory system.

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FGH Floral Company has a delivery truck that is being sold after 5 years of use. The current book value of the delivery truck is $6,000. If FGH Floral Company sells the delivery truck for $9,000, what is the impact of this transaction? Provide Answer

On August 1, 20Y7, Rafael Masey established Planet Realty, which completed the following transactions during the month: Rafael Masey transferred cash from a personal bank account to an account to be used for the business in exchange for Common Stock, $22,000. Purchased supplies on account, $1,190. Earned sales commissions, receiving cash, $18,260. Paid rent on office and equipment for the month, $4,020. Paid creditor on account, $440. Paid dividends, $1,080. Paid automobile expenses (including rental charge) for month, $1,110, and miscellaneous expenses, $750. Paid office salaries, $2,340. Determined that the cost of supplies used was $660.

What is the corporation's tax liability on these financial accounting question?

Answer 2

Question

Chapter 5, Problem 5.10BPR

(1)

To determine

Multi step income statement: A multiple step income statement refers to the income statement that shows the operating, and non-operating activities of the business, under separate head. In different steps of the multi-step income statement, principal operating activities are reported that starts from the record of sales revenue with all contra sales revenue account like sales returns, allowances and sales discounts.

To Explain: Whether Company S use a periodic inventory system or perpetual inventory system.

(2)

To determine

To Prepare: The income statement of Company S for the year ended June 30, 2016.

3.

To determine

Closing entries: These refers to the journal entries that are recorded at the end of an each accounting period. It closes all revenue accounts earned, and all expenses account incurred during the current accounting year to the company’s capital account.

To Record: The closing entries of Company S.

4.

To determine

To Mention: The net income of W Company under the perpetual inventory system.

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Answer 3

Question

Chapter 5, Problem 5.10BPR

(1)

To determine

Multi step income statement: A multiple step income statement refers to the income statement that shows the operating, and non-operating activities of the business, under separate head. In different steps of the multi-step income statement, principal operating activities are reported that starts from the record of sales revenue with all contra sales revenue account like sales returns, allowances and sales discounts.

To Explain: Whether Company S use a periodic inventory system or perpetual inventory system.

(2)

To determine

To Prepare: The income statement of Company S for the year ended June 30, 2016.

3.

To determine

Closing entries: These refers to the journal entries that are recorded at the end of an each accounting period. It closes all revenue accounts earned, and all expenses account incurred during the current accounting year to the company’s capital account.

To Record: The closing entries of Company S.

4.

To determine

To Mention: The net income of W Company under the perpetual inventory system.

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Answer 4

Question

Chapter 5, Problem 5.10BPR

(1)

To determine

Multi step income statement: A multiple step income statement refers to the income statement that shows the operating, and non-operating activities of the business, under separate head. In different steps of the multi-step income statement, principal operating activities are reported that starts from the record of sales revenue with all contra sales revenue account like sales returns, allowances and sales discounts.

To Explain: Whether Company S use a periodic inventory system or perpetual inventory system.

(2)

To determine

To Prepare: The income statement of Company S for the year ended June 30, 2016.

3.

To determine

Closing entries: These refers to the journal entries that are recorded at the end of an each accounting period. It closes all revenue accounts earned, and all expenses account incurred during the current accounting year to the company’s capital account.

To Record: The closing entries of Company S.

4.

To determine

To Mention: The net income of W Company under the perpetual inventory system.

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Answer 5

Chapter 5, Problem 5.10BPR

(1)

To determine

Multi step income statement: A multiple step income statement refers to the income statement that shows the operating, and non-operating activities of the business, under separate head. In different steps of the multi-step income statement, principal operating activities are reported that starts from the record of sales revenue with all contra sales revenue account like sales returns, allowances and sales discounts.

To Explain: Whether Company S use a periodic inventory system or perpetual inventory system.

(2)

To determine

To Prepare: The income statement of Company S for the year ended June 30, 2016.

3.

To determine

Closing entries: These refers to the journal entries that are recorded at the end of an each accounting period. It closes all revenue accounts earned, and all expenses account incurred during the current accounting year to the company’s capital account.

To Record: The closing entries of Company S.

4.

To determine

To Mention: The net income of W Company under the perpetual inventory system.

Answer 6

Chapter 5, Problem 5.10BPR

(1)

To determine

Multi step income statement: A multiple step income statement refers to the income statement that shows the operating, and non-operating activities of the business, under separate head. In different steps of the multi-step income statement, principal operating activities are reported that starts from the record of sales revenue with all contra sales revenue account like sales returns, allowances and sales discounts.

To Explain: Whether Company S use a periodic inventory system or perpetual inventory system.

Answer 7

Chapter 5, Problem 5.10BPR

(1)

To determine

Multi step income statement: A multiple step income statement refers to the income statement that shows the operating, and non-operating activities of the business, under separate head. In different steps of the multi-step income statement, principal operating activities are reported that starts from the record of sales revenue with all contra sales revenue account like sales returns, allowances and sales discounts.

To Explain: Whether Company S use a periodic inventory system or perpetual inventory system.

Answer 8

(2)

To determine

To Prepare: The income statement of Company S for the year ended June 30, 2016.

Answer 9

(2)

To determine

To Prepare: The income statement of Company S for the year ended June 30, 2016.

Answer 10

3.

To determine

Closing entries: These refers to the journal entries that are recorded at the end of an each accounting period. It closes all revenue accounts earned, and all expenses account incurred during the current accounting year to the company’s capital account.

To Record: The closing entries of Company S.

Answer 11

3.

To determine

Closing entries: These refers to the journal entries that are recorded at the end of an each accounting period. It closes all revenue accounts earned, and all expenses account incurred during the current accounting year to the company’s capital account.

To Record: The closing entries of Company S.

Answer 12

4.

To determine

To Mention: The net income of W Company under the perpetual inventory system.

Answer 13

4.

To determine

To Mention: The net income of W Company under the perpetual inventory system.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 5 - Prob. 1DQ Ch. 5 - Prob. 2DQ Ch. 5 - The credit period during which the buyer of...Ch. 5 - What is the meaning of (A) 1/15, n/60; (B) n/30;...Ch. 5 - How are sales to customers using .MasterCard and...Ch. 5 - Prob. 6DQ Ch. 5 - Prob. 7DQ Ch. 5 - Name three accounts that would normally appear in...Ch. 5 - Audio Outfitter Inc., which uses a perpetual...Ch. 5 - Prob. 10DQ

Solution Summary: The author explains that Company S uses a periodic inventory system, which records the accounts for purchases, freight-in charges, purchase discounts, and purchases returns and allowances at the end of each accounting period.

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To Prepare: The income statement of Company S for the year ended June 30, 2016.

To Mention: The net income of W Company under the perpetual inventory system.

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Chapter 5 Solutions