Question

BE5-2 Presented below are the components in Gates Company's income statement. Determine the missing amounts. Sales Cost of Gross Operating Net Revenue Goods Sold Profit Expenses Income (a) $ 75,000 ? $30,000 ? $10,800 (b) $108,000 $70,000 ? ? $29,500 ? $83,900 $79,600 $39,500 ?

Answer 1

Cost of Gros Operating Net Goods sold Profit Expenses Income $45,000 $30,000 $ 19,200 $ 10,800 Libz 70,000 $30,000 & 8,500 $29,500 es $ 163,500 $ 83,900 $ 79,600 $39,500 $ 40,100 Sales Revenue cas $75,000 $ 108,000 Calculation: (a) Gross Profit - Sales Revenue - cost of Goods sold Cost of Goods Sold = Sales Revenue 4 Gross Profit Cost of Goode sold = $75,000 - $30,000 $ 45,000 Operating Expenses . (b Gross Profit < Gross Profit - Net Income $30,000 - $10,000 $19,200 Sales Revenue cost of Goods Sold $ 108,000 $70,000 = $ 38,000 Gross Profit - Net Income $ 38,000 - $29,500 $ 8,500 Operating Expenses = (C) sales Revenue Cost of Goods sold & Gross Profit $ 83,900 & $79,600 $ 163,500 Gross Profit - Operating expenses $79,600 - $39,500 2 $40,100 Net Income こ =

Credit La Noi Date Account titles and explanation Debit 11. Aprils Inventory $23,000 Accounts Payable $23,000 (to wecond merchandise purchased) 2-April 6 Inventory $900 $900 (to second freight cost paid) 3. April 7 Equipment $ 26,000 Accounts Payable $ 26,000 (Yo recond equipment purchased) Accounts Payable $3,000 Inventory $3,000 (to second credit granted for returned merchandises April 15 Accounts Payable $20,000 Inventory $ 400 Cash $ 19,600 (to recond due amount paid) 4. April & 5 Calculation April 15: Accounts Payable (Merchandise Purchased - Merchandise returned) $23,000 $3,000 = $ 20,000

Inventory ($23,000 - $3,000) x 2% discount $ 20,000 x 2% discount #Чоно $ 400 discount Cash $ 20,000 $ 19,600 رط Date credit Account titles and explanation Debit Accounts Payable May y у $20,000 Cash $20,000 ( (to record dus balance paid) Calculation: - Cash = Merchandise Purchased - Merchandise Retuaned $23,000 $3,000 $ 20,000