Question

Exercise 4-1 Computing revenues, expenses, and income LO C1, C2 Fill in the blanks in the following separate income statements a through e. (Amounts to be deducted should be indicated by a minus sign.) $ 65,000 $ 45,900 $ 53,000 $ 25,600 16,440 5,200 7 8,500 37,000 Sales Cost of goods sold Merchandise inventory (beginning) Total cost of merchandise purchases Merchandise inventory (ending) Cost of goods sold Gross profit Expenses Net income (loss) ,400 43,000 (5,700) 4,590 5,600 (8,200) (2,400) 18,000 33,670 6,100 17,000 3,700 10,160 (6,460) 5 10,250 17,650 42,900 ,500 37,400 8,000 $ $ $

Answer 1

Correct Answer:

		A	B	C	D	E
A	SALES	$   65,000.00	$    45,900.00	$    53,000.00	$    87,600.00	$ 25,600.00
B	cost of goods sold
C	Merchandise inventory (beginning)	$      8,500.00	$    16,440.00	$       5,200.00	$       7,400.00	$    4,590.00
D	Total cost of merchandise purchases	$   37,000.00	$       3,960.00	$    52,300.00	$    43,000.00	$    5,600.00
E	Merchandise inventory (Ending)	$ (11,830.00)	$    (2,400.00)	$    (8,200.00)	$    (5,700.00)	$ (4,090.00)
F =C+D+E	Cost of goods sold	$   33,670.00	$    18,000.00	$    49,300.00	$    44,700.00	$    6,100.00
G =A-F	Gross profit	$   31,330.00	$    27,900.00	$       3,700.00	$    42,900.00	$ 19,500.00
H	Expenses	$   17,000.00	$    10,250.00	$    10,160.00	$       5,500.00	$    8,000.00
I =G-H	Net income (loss)	$   14,330.00	$    17,650.00	$    (6,460.00)	$    37,400.00	$ 11,500.00

End of answer.

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