Homework Answers
25.
With respect to the income statement Sales discounts are included in the calculation of gross profit.
Correct option is (D)
26.
Positive operating income will result if gross profit exceeds operating expenses.
Correct option is (D)
27.
The operating expenses section of an income statement for a merchandising company would not include Cost of goods sold.
Correct option is (C)
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25. With respect to the income statement A) contra revenue accounts do not appear on the...
Sales returns and allowances and sales discounts, are both contra revenue accounts with debit balances that...
Sales returns and allowances and sales discounts, are both contra revenue accounts with debit balances that are deducted from sales revenue to arrive at net sales and cost of goods could also be deducted from sales revenue, but sales revenue is not deducted from itself. All of the following appear as deductions from sales revenue on an income statement for merchandisers except Sales Revenue. O Sales Returns and Allowances. Cost of Goods Sold. Sales Discounts.
1. 2. 3. 4. 5. A company that maintains a perpetual inventory system has an inventory...
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A company that maintains a perpetual inventory system has an inventory account balance of $50,000. The physical count of goods on hand totals $49,600. Which of the following adjusting entries is correct? O Debit Sales Discounts and credit Inventory O Debit Purchases and credit Inventory O Debit Cost of Goods Sold and credit Inventory. O Debit Inventory and credit Purchases Which of the following accounts will appear in the trial balance of a merchandising company...
1 The following is a listing of all of the income statement accounts for Mulberry Street...
1 The following is a listing of all of the income statement accounts for Mulberry Street Sportswear as they appear on the adjusted trial balance as of December 31. 8 00:43:02 Skipped Advertising Expense Cost of Goods Sold Delivery Expense Insurance Expense Income Tax Expense Rent Expense Interest Expense Sales Revenue Sales Discounts Sales Returns & Allowances $10,400 88,800 5, 200 600 6,040 10,400 1,400 160,900 10,500 18,500 Required: a. Prepare a multistep income statement. b. Compute the gross profit...
The following is a listing of all of the income statement accounts for Mulberry Street Sportswear...
The following is a listing of all of the income statement accounts for Mulberry Street Sportswear as they appear on the adjusted trial balance as of December 31 $11. Advertising Expense Cost of Goods Sold Delivery Expense Insurance Expense Income Tax Expense Rent pense Interest Expense Sales Revenue Sales Discounts Sales Returns & Allowances 4,200 120 5,200 11 1.30 161,900 10. 17,200 Required: a. Prepare a multistep income statement b. Compute the gross profit percentage Complete this question by entering...
Multiple-step income statement and balance sheet The following selected accounts and their current balances appear in...
Multiple-step income statement and balance sheet The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 20Y7: Cash $109,100 Retained Earnings $480,800 Accounts Receivable 290,900 Dividends 65,300 Inventory 331,600 Sales 3,995,800 Estimated Returns Inventory 5,000 Cost of Goods Sold 2,311,300 Office Supplies 10,300 Sales Salaries Expense 649,900 Prepaid Insurance 8,000 Advertising Expense 178,700 Office Equipment 240,100 Depreciation Expense— Store Equipment 34,800 Accumulated Depreciation— Office Equipment 163,100 Miscellaneous Selling...
The following is a listing of all of the income statement accounts for Mulberry Street Sportswear...
The following is a listing of all of the income statement accounts for Mulberry Street Sportswear as they appear on the adjusted trial balance as of December 31. Advertising Expense $10,500 Cost of Goods Sold 88,100 Delivery Expense 4,400 Insurance Expense 1,100 Income Tax Expense 6,240 Rent Expense 10,900 Interest Expense 1,800 Sales Revenue 160,200 Sales Discounts 9,100 Sales Returns & Allowances 18,700 Required: Prepare a multistep income statement. Compute the gross profit percentage.
The following selected accounts from the Blue Door Corporation's general ledger are presented below for the...
The following selected accounts from the Blue Door Corporation's general ledger are presented below for the year ended December 31, 2022 Advertising expense $55,000 Interest revenue Common stock 250,000 Inventory $ 30,000 67.000 24,000 Cost of goods sold 1,085,000 Rent revenue Depreciation expense 125,000 Retained earnings 535,000 Dividends 150,000 Salaries and wages expense 675,000 8,500 Freight-out 25,000 Sales discounts Income tax expense 70,000 Sales returns and allowances 41,000 2,400,000 Insurance expense Sales revenue 15,000 70,000 Interest expense Prepare a multiple-step...
1.The only revenue for the Ford Company is Sales. The only expenses are Cost of Goods...
1.The only revenue for the Ford Company is Sales. The only expenses are Cost of Goods Sold and Operating Expenses. A net income will result if: Select one: a. Gross Margin exceeds Operating Expenses b. Cost of Goods Sold exceeds Purchases c. Operating Expenses exceeds Cost of Good Sold d. Gross Margin exceeds Cost of Goods Sold e. Operating Expenses exceeds Gross Margin 2.Lopez Company received $6,400 on July 1, 2017 for four years’ rent in advance and recorded the...
The adjusted trial balance of Crane Company included the following selected accounts: Debit Credit Sales Revenue...
The adjusted trial balance of Crane Company included the following selected accounts: Debit Credit Sales Revenue $659.000 $60,000 Sales Returns and Allowances Sales Discounts 10,000 Cost of Goods Sold 394,000 Freight-Out 2,800 Advertising Expense 10,600 Interest Expense 24.000 Salaries and Wages Expense 82.000 Utilities Expense 23,000 Depreciation Expense 3.700 Interest Revenue 26,300 Use the above information to prepare a multiple-step income statement for the year ended December 31, 2022. (List other revenues before other expenses.) CRANE COMPANY Income Statement $...
In its income statement for the year ended December 31, 2017, Blossom Company reported the following...
In its income statement for the year ended December 31, 2017, Blossom Company reported the following condensed data. Salaries and wages expenses Cost of goods sold Interest expense Interest revenue Depreciation expense $450,000 Loss on disposal of plant assets 1,149,500 Sales revenue 65,000 Income tax expense 145,200 Sales discounts 300,000 Utilities expense $83,000 2,210,000 25,000 120,000 100,000 Your answer is partially correct. Prepare a multiple-step income statement. (List other revenues before other expenses.) BLOSSOM COMPANY Income Statement For the Year...
Sales returns and allowances and sales discounts, are both contra revenue accounts with debit balances that are deducted from sales revenue to arrive at net sales and cost of goods could also be deducted from sales revenue, but sales revenue is not deducted from itself. All of the following appear as deductions from sales revenue on an income statement for merchandisers except Sales Revenue. O Sales Returns and Allowances. Cost of Goods Sold. Sales Discounts.
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2.
3.
4.
5.
A company that maintains a perpetual inventory system has an inventory account balance of $50,000. The physical count of goods on hand totals $49,600. Which of the following adjusting entries is correct? O Debit Sales Discounts and credit Inventory O Debit Purchases and credit Inventory O Debit Cost of Goods Sold and credit Inventory. O Debit Inventory and credit Purchases Which of the following accounts will appear in the trial balance of a merchandising company...
1 The following is a listing of all of the income statement accounts for Mulberry Street Sportswear as they appear on the adjusted trial balance as of December 31. 8 00:43:02 Skipped Advertising Expense Cost of Goods Sold Delivery Expense Insurance Expense Income Tax Expense Rent Expense Interest Expense Sales Revenue Sales Discounts Sales Returns & Allowances $10,400 88,800 5, 200 600 6,040 10,400 1,400 160,900 10,500 18,500 Required: a. Prepare a multistep income statement. b. Compute the gross profit...
The following is a listing of all of the income statement accounts for Mulberry Street Sportswear as they appear on the adjusted trial balance as of December 31 $11. Advertising Expense Cost of Goods Sold Delivery Expense Insurance Expense Income Tax Expense Rent pense Interest Expense Sales Revenue Sales Discounts Sales Returns & Allowances 4,200 120 5,200 11 1.30 161,900 10. 17,200 Required: a. Prepare a multistep income statement b. Compute the gross profit percentage Complete this question by entering...
The following selected accounts from the Blue Door Corporation's general ledger are presented below for the year ended December 31, 2022 Advertising expense $55,000 Interest revenue Common stock 250,000 Inventory $ 30,000 67.000 24,000 Cost of goods sold 1,085,000 Rent revenue Depreciation expense 125,000 Retained earnings 535,000 Dividends 150,000 Salaries and wages expense 675,000 8,500 Freight-out 25,000 Sales discounts Income tax expense 70,000 Sales returns and allowances 41,000 2,400,000 Insurance expense Sales revenue 15,000 70,000 Interest expense Prepare a multiple-step...
The adjusted trial balance of Crane Company included the following selected accounts: Debit Credit Sales Revenue $659.000 $60,000 Sales Returns and Allowances Sales Discounts 10,000 Cost of Goods Sold 394,000 Freight-Out 2,800 Advertising Expense 10,600 Interest Expense 24.000 Salaries and Wages Expense 82.000 Utilities Expense 23,000 Depreciation Expense 3.700 Interest Revenue 26,300 Use the above information to prepare a multiple-step income statement for the year ended December 31, 2022. (List other revenues before other expenses.) CRANE COMPANY Income Statement $...
In its income statement for the year ended December 31, 2017, Blossom Company reported the following condensed data. Salaries and wages expenses Cost of goods sold Interest expense Interest revenue Depreciation expense $450,000 Loss on disposal of plant assets 1,149,500 Sales revenue 65,000 Income tax expense 145,200 Sales discounts 300,000 Utilities expense $83,000 2,210,000 25,000 120,000 100,000 Your answer is partially correct. Prepare a multiple-step income statement. (List other revenues before other expenses.) BLOSSOM COMPANY Income Statement For the Year...
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