Sanchez Company engaged in the following transactions during Year 1:
1) Started the business by issuing $14,300 of common stock for cash.
2) The company paid cash to purchase $8,500 of inventory.
3) The company sold inventory that cost $5,900 for $12,400 cash.
4) Operating expenses incurred and paid during the year, $5,400.
Sanchez Company engaged in the following transactions during Year
2:
1) The company paid cash to purchase $12,600 of inventory.
2) The company sold inventory that cost $10,100 for $19,000 cash.
3) Operating expenses incurred and paid during the year, $6,400.
Note: Sanchez uses the perpetual inventory system.
Sanchez's gross margin for the Year 2 is:
Multiple Choice
$10,100.
$2,500.
$6,400.
$8,900.
Sanchez Company engaged in the following transactions during Year 1: 1) Started the business by issuing...
Sanchez Company engaged in the following transactions during Year 1: 1) Started the business by issuing $14,500 of common stock for cash. 2) The company paid cash to purchase $8,600 of inventory. 3) The company sold inventory that cost $6,000 for $12,650 cash. 4) Operating expenses incurred and paid during the year, $5,500. Sanchez Company engaged in the following transactions during Year 2: 1) The company paid cash to purchase $12,800 of inventory. 2) The company sold inventory that cost...
Sanchez Company engaged in the following transactions during Year 1: 1) Started the business by issuing $13,500 of common stock for cash. 2) The company paid cash to purchase $8,100 of inventory. 3) The company sold inventory that cost $5,500 for $11,400 cash. 4) Operating expenses incurred and paid during the year, $5,000. Sanchez Company engaged in the following transactions during Year 2: 1) The company paid cash to purchase $11,800 of inventory. 2) The company sold inventory that cost...
North Company engaged in the following transactions during Year 1: 1) Started the business by issuing $50,000 of common stock for cash. 2) The company paid cash to purchase $38,000 of inventory. 3) The company sold inventory that cost $17,000 for $33,000 cash. 4) Operating expenses incurred and paid during the year, $9,000. North Company engaged in the following transactions during Year 2: 1) The company paid cash to purchase $35,000 of inventory. 2) The company sold inventory that cost...
Star Company engaged in the following transactions during Year 1: 1) Started the business by issuing $78,000 of common stock for cash. 2) The company paid cash to purchase $36,400 of inventory. 3) The company sold inventory that cost $19,000 for $46,000 cash. 4) Operating expenses incurred and paid during the year, $13,400. Star Company engaged in the following transactions during Year 2: 1) The company paid cash to purchase $15,900 of inventory. 2) The company sold inventory that cost...
Martin Company engaged in the following transactions during Year 1: • Started the business by issuing $13,100 of common stock for cash. • The company paid cash to purchase $7,900 of inventory. • The company sold inventory that cost $5,300 for $10,900 cash. • Operating expenses incurred and paid during the year, $4,800. 5:31 Martin Company engaged in the following transactions during Year 2: • The company paid cash to purchase $11,400 of inventory • The company sold inventory that...
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Required information (The following information applies to the questions displayed below.) Sanchez Company engaged in the following transactions during Year 1: 1) Started the business by issuing $11,100 of common stock for cash. 2) The company paid cash to purchase $6,900 of inventory. 3) The company sold inventory that cost $4,300 for $8,400 cash. 4) Operating expenses incurred and paid during the year, $3,800. Sanchez Company engaged in the following transactions during Year 2: 1) The company paid cash to...
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Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are cash transactions) Acquired $3,600 cash from issuing common stock. Borrowed $2,500 from a bank. Earned $3,400 of revenues. Incurred $2,460 in expenses. Paid dividends of $460. Lexington Company engaged in the following transactions during Year 2: (Assume all transactions are cash transactions) Acquired an additional $800 cash from the issue of common stock. Repaid $1,510 of its debt to the bank....
Lexington Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.) 1) Acquired $4,700 cash from issuing common stock. 2) Borrowed $3,050 from a bank. 3) Earned $3,950 of revenues. 4) Incurred $2,570 in expenses. 5) Paid dividends of $570. Lexington Company engaged in the following transactions during Year 2: 1) Acquired an additional $1,350 cash from the issue of common stock. 2) Repaid $1,895 of its debt to the...