Question

#2 Thank you

1. The Antique Mall completed the following transactions during February 2017: Feb. 3 7 9 10 Purchased $3,300 of merchandise inventory on account under terms 3/10, n/EOM and FOB shipping point Returned $900 of defective merchandise purchased on February 3. Paid freight bill of $400 on February 3 purchase. Sold merchandise inventory on account for $4.700. Payment terms were 2/15, 1/30. These goods cost the company $2,350 Paid amount owed on credit purchase of February 3, less the return and the discount Received cash from February 10 customer in full settlement of their debt. 12 28 Requirements: R1. Journalize the sales transactions for Antique Mall. Explanations are not required. 2. The adjusted trial balance of Heartstrings Music Company at February 29, 2018, follows:

Answer 1

R1	Closing entries	Debit	Credit
a	Sales revenue	165000
	Income summary		165000
b	Income summary	122300
	Sales return		7400
	Cost of goods sold		78000
	Selling expense		22000
	General expense		12500
	Interest expense		2400
c	Income summary	42700
	Retained earnings		42700
d	Retained earnings	42200
	Dividends		42200
R2	Single step income statement
	Revenue
	Sales revenue		165000
	Expense
	Sales return	7400
	Cost of goods sold	78000
	Selling expense	22000
	General expense	12500
	Interest expense	2400
	Total expense		122300
	Net income		42700
R3	Sales	165000
Less	Sales return	7400
	Net sales	157600
Less	Cost of goods sold	78000
	Gross profit	79600
	Gross profit % = Gross profit / Net sales	51%
		(79600/157600)
	Inventory turnover = Cost of goods sold / Average inventory
	Cost of goods sold	78000
	Beginning inventory	12800
	Ending inventory	16000
	Average inventory	14400	(12800+16000)/2
	Average inventory = (Beginning + Ending )/2
	Inventory turnover	5.4	(78000/14400)
R4	The result is same it has not changed