Question

Chec Required information Problem 6-3B Record transactions and prepare a partial income statement using a perpetual inventory system (L06-2, 6-5) The following information applies to the questions displayed below) At the beginning of June, Circuit Country has a balance in inventory of $2,250. The following transactions occur during the month of June. June 2Purchase radios on account from Radio World for $1,950, terms 2/15, m/45. June 4 Pay cash for Ereight charges related to the June 2 purchase from Radio World, $250. June 8 Return defective radios to Radio World and receive credit, $200. June 10 Pay Radio World in full. June 11 Sell radios to customers on account, $3,500, that had a cost of $2,450. June 18 Receive payment on account from customers, $2,500. June 20 Purchase radios on account from Sound Unlimited for $3,050, terms 2/10, n/30. June 23 Sol1 radios to customers for cash, $4,550, that had a cost of $2,850. June 26 Return damaged radios to Sound Unlimited and receive credit of $400. June 28 Pay Sound Unlimited in full. Problem 6-3B Part 2 2. Prepare the top section of the multiple-step income statement through gross profit for the month of June. CIRCUIT COUNTRY Multiple-step Income Statement (partial) For the month of June of 9 Next

Answer 1

CIRCUIT COMPANY multiple - Step Income statement (Partial) for the month of June Net sales $8oso COST OF Good song (5300) GLOSS Profit 2750 sales bune il June 23 $ 3500 4550 TOTO $ SOSO COGS: June 11 trune 23 $2450 2850 65300 TO Tal