Question

The following information was taken from the accounting records of ABC Company for the period ended January 31, 2019: Cash Retained Earnings Advertising Expense Cost of Goods Sold Rental Revenue Accounts Payable Common Stock Accumulated Depreciation $17,000 Accounts Receivable Income Tax Expense Inventory Wage Expense Sales Revenue Trademark Buildings and Land $29,000 $66,000 Cat January 1, 2019) $17,000 $36,000 $11,000 $38,000 $72,000 $45,000 $14,000 $51,000 $12,000 $93,000 $10,000 $83,000 Calculate the amount of net income earned by ABC Company in the m onth of January
The following information is available for Buckeye Company anuar December 18 Cash Land Notes payable Retained earnings Accumulated depreciation Supplies Accounts receivable Equipment Accounts payable Common stock Inventory $25,000 40,000 29,000 33,000 4,000 8,000 16,000 20,000 11,000 40,000 18,000 $30,000 42,000 45,000 58,000 7,000 10,000 17,000 26,000 40,000 42,000 During 2018, Buckeye Company reported sales revenue of $89,000, sa laries expense of $22,000, rent expense of $17,000, and cost of goods sold. Bucke ye Company paid $9,000 of dividends during 2018. (Note the amount of cost o f goods sold has been intentionally omitted from this problem) Calculate the amount of net income earned by Buckeye Company duri ng 2018
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The following information is available for Buckeye Company anua December 18 Cash Land Notes payable Retained earnings Accumulated depreciation Supplies Accounts receivable Equipment Accounts payable Common stock Inventory $25,000 40,000 29,000 33,000 4,000 8,000 16,000 20,000 11,000 40,000 18,000 $30,000 42,000 45,000 58,000 7,000 10,000 17,000 26,000 40,000 42,000 During 2018, Buckeye Company reported sales revenue of $89,000, sa laries expense of $22,000, rent expense of $17,000, and cost of goods sold. Bucke ye Company paid $9,000 of dividends during 2018. CNote the amount of cost o f goods sold has been intentionally omitted from this problem) Calculate the amount of gross profit earned by Buckeye Company d uring 2018
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Income statement
Amount in USD
Particulars ABC company Buckeye company
Sales revenue 93000 89000
Cost of goods sold 36000 13000
Gross profit 57000 76000
Wage expense 12000 22000
Rental expense 0 17000
Advertisement expense 17000 0
Depreciation expense 3000
Profit before other income and taxes 28000 34000
Rental revenue 11000 0
Profit before taxes 39000 34000
Tax 14000 0
Profit afte tax 25000 34000
Dividend 0 9000
Profit t/f to retained earnings 25000 25000
1-Jan-18 31-Dec-18 Variation
Retained earnings 33000 58000 25000
Equipment 20000 17000 3000 due to increase in accumulated dep by 3000
Current assets
Particulars 31-Dec-18
Cash 30000
Accounts receivable 17000
Supplies 10000
Inventory 42000
Total 99000
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