Question

2. FICF b. Prepare a single-step income statement. Calculate gross profit margin and profit the results. (Hint: You will have to calcul d. Prepare the closing entries. Post to the Income Summary account before closing Bert and partial Taking It Further What kind of informatio a user of the mancial statements? P5.7B (L043) AP The unadjusted trial bal. 2021, follow GLOE as part of your explanation P5.5B (LO 2, 3, 5) AP At the beginning of September 2021. Stojanovic Distributing Company's ledger showed Cash $12.500, Merchandise Inventory $7.500, and D. Stojanovic, Capital, $20,000. Stojanovic uses the perpetual inventory system and the earnings approach. During the month of September, the company had the following selected transactions: Sept.2 Purchased $13.500 of merchandise inventory from Moon Supply Co., terms 1/15, n/30, FOB destination. The correct company paid $325 cash for freight charges on the September 2 purchase. 5 Sold merchandise inventory to Brandon Retailers for $18,000. The cost of the merchan dise was $11.310 and the terms were 2/10,n/30, FOB destination. Issued a $1.400 credit for merchandise returned by Brandon Retailers. The merchandise originally cost 3890 and was returned to inventory. 6 The correct company paid 5420 freight on the September 5 sale. 8 Purchased $900 of supplies for cash. 10 Purchased $6,450 of merchandise inventory from Tina Wholesalers, terms 2/10, n/30. FOB shipping point 10 The correct company pald 5150 freight costs on the purchase from Tina Wholesalers. 12 Received a $450 credit from Tina Wholesalers for returned merchandise. 15 Paid Moon Supply Co the amount due. 15 Collected the balance owing from Brandon Retailers. 19 Sold merchandise for $10,875 cash. The cost of this merchandise was 56,855. 20 Paid Tina Wholesalers the balance owing from the September 10 purchase. 25 Made a 3750 cash refund to a cash customer for merchandise returned. The returned merchandise had a cost of 5470. The merchandise was damaged and could not be resold. 30 Sold merchandise to Dragen & Company for $6.420, terms n/30, FOB shipping point Stojanovic's cost for this merchandise was $4,050. Instructions a. Record the transactions assuming Stojanovic uses a perpetual inventory system. b. Set up general ledger accounts for Merchandise Inventory, Sales, Sales Returns and Allowances, Sales Discounts, and cost of Goods Sold. Enter the beginning Merchandise Inventory balance, post the transactions, and calculate the balances for each account. c. Prepare a partial multiple step income statement, up to gross profit, for the month of September 2021. Taking it. Further Assume that Stojanovic has a "no questions asked" policy in terms of accepting sales returns up to six months after the initial sale. What uncertainties does the company face in terms of cal- culating its gross profit for September? Cash Short-term investments Accounts receivable Merchandise inventory Supplies Forniture Accumulated depreciation- Equipment Accumulated depreciation- Accounts payable Unearned revenue Notes payable I. Rochefort, capital 1. Rochefort, drawings Sales Sales returns and allowance Sales discounts Cost of goods sold Insurance expense Rent expense Salaries expense genere. P5.6B (L04, 5, 6) AP Western Lighting Warehouse has a July 31 fiscal year end and uses a perpetual inventory system with the earnings approach. An alphabetical list of its account balances al July 31, 2021 follows. All accounts have normal balances.

I just need the answer immediately for 5.5 B

Answer 1

a. In the books of Stovanic Distributing Company:

Date	Account Titles	Debit	Credit
		$	$
Sept 2	Merchandise Inventory	13,500
	Accounts Payable		13,500
Sept 4	No entry needed	0	0
Sept 5	Accounts Receivable	18,000
	Sales		18,000
Sept 5	Cost of Goods Sold	11,310
	Merchandise Inventory		11,310
Sept 6	Sales Returns and Allowances	1,400
	Accounts Receivable		1,400
Sept 6	Merchandise Inventory	890
	Cost of Goods Sold		890
Sept 6	Freight Out	420
	Cash		420
Sept 8	Supplies	900
	Cash		900
Sept 10	Merchandise Inventory	6,450
	Accounts Payable		6,450
Sept 10	Merchandise Inventory	150
	Cash		150
Sept 12	Accounts Payable	450
	Merchandise Inventory		450
Sept 15	Accounts Payable	13,500
	Merchandise Inventory		135
	Cash		13,365
Sept 15	Cash	16,268
	Sales Discounts	332
	Accounts Receivable		16,600
Sept 19	Cash	10,875
	Sales		10,875
Sept 19	Cost of Goods Sold	6,855
	Merchandise Inventory		6,855
Sept 20	Accounts Payable	6,000
	Merchandise Inventory		120
	Cash		5,880
Sept 25	Sales Returns and Allowances	750
	Cash		750
Sept 30	Accounts Receivable	6,420
	Sales		6,420
Sept 30	Cost of Goods Sold	4,050
	Merchandise Inventory		4,050

b.

Merchandise Inventory
Bal. Sep 1	7,500	Sept 5	11,310
Sept 2	13,500	Sep 12	450
Sep 6	890	Sep 15	135
Sep 10	6,450	Sep 19	6,855
Sep 10	150	Sep 20	120
		Sep 30	4,050
Bal. Sep 30	5,570
Sales
		Bal. Sep 1	0
		Sep 5	18,000
		Sep 19	10,875
		Sep 30	6,420
		Bal. Sep 30	35,295
Sales Returns and Allowances
Bal. Sep 1	0
Sep 6	1,400
Sep 25	750
Bal. Sep 30	2,150
Sales Discounts
Bal. Sep 1	0
Sep 15	332
Bal. Sep 30	332
Cost of Goods Sold
Bal. Sep 1	0	Sep 6	890
Sep 5	11,310
Sep 19	6,855
Sep 30	4,050
Bal. Sep 30	21,325