Wolcott Warehouse Store has an August 31 fiscal year end and uses a perpetual inventory system. An alphabetical list of its account balances at August 31, 2014, follows.
Homework Answers
| (a) | ADJUSTING ENTRY FOR INVENTORY | ||||
| ACCOUNT TITLE | DEBIT | CREDIT | |||
| Loss on Inventory Writeoff | $2,440 | (57440-55000) | |||
| Inventory | $2,440 | ||||
| (b) | SINGLE STEP INCOME STATEMENT | ||||
| Net Sales | $685,220 | (703360-3700-14440) | |||
| Expenses: | |||||
| Cost of goods sold | $569,680 | ||||
| Depreciation expense | $6,680 | ||||
| Insurance expense | $2,895 | ||||
| Interest expense(Net) | $1,200 | (2160-960) | |||
| Rent expense | $16,000 | ||||
| Supplies expense | $5,840 | ||||
| Loss on Inventory Writeoff | $2,440 | ||||
| Total Expenses | $604,735 | ||||
| Net Income | $80,485 | ||||
| (c) | MULTI-STEP INCOME STATEMENT | ||||
| Net Sales | $685,220 | ||||
| Cost of goods sold | $569,680 | ||||
| Gross Profit | $115,540 | ||||
| Operating Expenses: | |||||
| Insurance expense | $2,895 | ||||
| Rent expense | $16,000 | ||||
| Supplies expense | $5,840 | ||||
| Loss on Inventory Writeoff | $2,440 | ||||
| Total expenses | $27,175 | ||||
| Income Before Interest and Depreciation | $88,365 | ||||
| Depreciation expenses | $6,680 | ||||
| Income Before Interest | $81,685 | ||||
| Interest expense (Net) | $1,200 | ||||
| Net Income | $80,485 | ||||
| Gross Profit Margin=Gross Profit/Net Sales | 0.168617 | (115540/685220) | |||
| Gross Profit Margin= | 16.86% | ||||
| Profit Margin =Net Income/Net Sales | 0.117459 | (80485/685220) | |||
| Profit Margin = | 11.75% | ||||
| Last Year | This Year | ||||
| Gross Profit Margin | 20% | 16.86% | |||
| Profit Margin | 10% | 11.75% | |||
| The Gross Profit margin has decreased, but the Profit margin is increased. | |||||
| This shows that cost of goods has increased, but other expenses are reduced. | |||||
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Wolcott Warehouse Store has an August 31 fiscal year end and uses a perpetual inventory system. An alphabetical list of its account balances at August 31, 2014, follows.
The following is an alphabetical list of bud’s bakery's adjusted account balances at the end of the company’s fiscal year on November 30, 2021:
Valley Company’s adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following...
Valley Company’s adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense—selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative. Debit Credit Merchandise inventory (ending) $ 40,700 Other (noninventory) assets 61,340 Total liabilities $ 26,000 Common stock 15,440 Retained earnings 19,300 Dividends 8,400 Sales 226,000 Sales discounts 2,300 Sales returns and allowances 12,500 Cost of goods sold 74,300 Sales...
Saved Valley Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the...
Saved Valley Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense-selling space, store supplies expense, advertising expense. It categorizes the remaining expenses as general and administrative. Credit Debit $ 42,300 40,810 $ 24,700 20,500 8,200 226,000 Merchandise inventory (ending) Other (noninventory) assets Total liabilities K. Valley, Capital K. Valley, Withdrawals Sales Sales discounts Sales returns and allowances Cost of goods sold Sales salaries expense Rent...
Valley Company’s adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following...
Valley Company’s adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense—selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative. Debit Credit Merchandise inventory (ending) $ 43,000 Other (noninventory) assets 65,150 Total liabilities $ 25,400 Common stock 17,360 Retained earnings 21,700 Dividends 8,500 Sales 225,700 Sales discounts 2,260 Sales returns and allowances 12,000 Cost of goods sold 72,100 Sales...
Valley Company’s adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following...
Valley Company’s adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense—selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative. Debit Credit Merchandise inventory (ending) $ 45,000 Other (noninventory) assets 180,000 Total liabilities $ 51,975 Common stock 60,575 Retained earnings 85,954 Dividends 8,000 Sales 307,800 Sales discounts 4,709 Sales returns and allowances 20,315 Cost of goods sold 118,387 Sales...
Valley Company’s adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following...
Valley Company’s adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense—selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative. Debit Credit Merchandise inventory (ending) $ 42,500 Other (noninventory) assets 170,000 Total liabilities $ 49,088 Common stock 57,210 Retained earnings 81,838 Dividends 8,000 Sales 290,700 Sales discounts 4,448 Sales returns and allowances 19,186 Cost of goods sold 112,026 Sales...
Valley Company’s adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following...
Valley Company’s adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense—selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative. Debit Credit Merchandise inventory (ending) $ 43,000 Other (noninventory) assets 65,150 Total liabilities $ 25,400 Common stock 17,360 Retained earnings 21,700 Dividends 8,500 Sales 225,700 Sales discounts 2,260 Sales returns and allowances 12,000 Cost of goods sold 72,100 Sales...
Valley Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following...
Valley Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense-selling space, store supplies expense, advertising expense. It categorizes the remaining expenses as general and administrative. Credit $ 45,045 128,576 266,760 Debit Merchandise inventory (ending) $ 39,000 Other (noninventory) assets 156,000 Total liabilities K. Valley, Capital K. Valley, Withdrawals 8,000 Sales Sales discounts 4,081 Sales returns and allowances 17,606 Cost of goods sold 103, 121 Sales...
Valley Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following...
Valley Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense selling space, store supplies expense, advertising expense. It categorizes the remaining expenses as general and administrative, Credit Debit $41,000 130,400 $ 25,000 104,550 8.000 225,600 Merchandise inventory (ending) Other (noninventory) assets Total liabilities K. Valley, Capital K. Valley, Withdrawals Sales Sales discounts Sales returns and allowances Cost of goods sold Sales salaries expense Rent expense Selling...
Valley Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following...
Valley Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense-selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative. Debit Credit Merchandise inventory (ending) Other (noninventory) assets $ 42, 800 59, 130 $ 25, 800 Total liabilities Common stock 16, 240 Retained earnings 20, 300 8, 800 Dividends Sales 226, 200 2, 260 13, 500 73, 000 32,...
Saved Valley Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense-selling space, store supplies expense, advertising expense. It categorizes the remaining expenses as general and administrative. Credit Debit $ 42,300 40,810 $ 24,700 20,500 8,200 226,000 Merchandise inventory (ending) Other (noninventory) assets Total liabilities K. Valley, Capital K. Valley, Withdrawals Sales Sales discounts Sales returns and allowances Cost of goods sold Sales salaries expense Rent...
Valley Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense-selling space, store supplies expense, advertising expense. It categorizes the remaining expenses as general and administrative. Credit $ 45,045 128,576 266,760 Debit Merchandise inventory (ending) $ 39,000 Other (noninventory) assets 156,000 Total liabilities K. Valley, Capital K. Valley, Withdrawals 8,000 Sales Sales discounts 4,081 Sales returns and allowances 17,606 Cost of goods sold 103, 121 Sales...
Valley Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense selling space, store supplies expense, advertising expense. It categorizes the remaining expenses as general and administrative, Credit Debit $41,000 130,400 $ 25,000 104,550 8.000 225,600 Merchandise inventory (ending) Other (noninventory) assets Total liabilities K. Valley, Capital K. Valley, Withdrawals Sales Sales discounts Sales returns and allowances Cost of goods sold Sales salaries expense Rent expense Selling...
Valley Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense-selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative. Debit Credit Merchandise inventory (ending) Other (noninventory) assets $ 42, 800 59, 130 $ 25, 800 Total liabilities Common stock 16, 240 Retained earnings 20, 300 8, 800 Dividends Sales 226, 200 2, 260 13, 500 73, 000 32,...
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