Assignment Instructions/ Description
BUS 591 WEEK 3 HOMEWORK ASSIGNMENT – ashford univ.
E5-2 Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred.InstructionsJournalize the September transactions.Sept. 6 Purchased calculators from Dragoo Co. at a total cost of $1,650, terms n/30. 9 Paid freight of $50 on calculators purchased from Dragoo Co. 10 Returned calculators to Dragoo Co. for $66 credit because they did not meet specifications.12 Sold calculators costing $520 for $690 to Fryer Book Store, terms n/30. 14 Granted credit of $45 to Fryer Book Store for the return of one calculator that was not ordered. The calculator cost $34. 20 Sold calculators costing $570 for $760 to Heasley Card Shop, terms n/30.
E5-6
Presented below is information for Zhou Co. for the month of January 2014.Cost of goods sold $212,000 Rent expense $ 32,000 Freight-out 7,000 Sales discounts 8,000 Insurance expense 12,000 Sales returns and allowances 20,000 Salaries and wages expense 60,000 Sales revenue 370,000
Instructions(a) Prepare an income statement using the format presented on page 245. Assume a 25% tax rate.(b) Calculate the profit margin and the gross profit rate.Prepare an income statement and calculate profitability ratios.
P5-5B An inexperienced accountant prepared this condensed income statement for Wright Company, a retail firm that has been in business for a number of years.WRIGHT COMPANY Income Statement For the Year Ended December 31, 2014Revenues Net sales $952,000 Other revenues 16,000 968,000 Cost of goods sold 548,000 Gross profit 420,000Operating expenses Selling expenses 160,000 Administrative expenses 104,000 264,000 Net earnings $156,000
As an experienced, knowledgeable accountant, you review the statement and determine the following facts.1. Net sales consist of sales $972,000, less freight-out on merchandise sold $20,000. 2. Other revenues consist of sales discounts $12,000 and interest revenue $4,000. 3. Selling expenses consist of salespersons’ salaries $88,000; depreciation on equipment $4,000; sales returns and allowances $46,000; advertising $12,000; and sales commissions $10,000. All compensation should be recorded as Salaries and Wages Expense.4. Administrative expenses consist of office salaries $54,000;dividends $14,000; utilities $13,000; interest expense $3,000; and rent expense $20,000, which includes prepayments totaling $2,000 for the first month of 2015. The utilities represent utilities paid. At December 31, utility expense of $3,000 has been incurred but not paid.InstructionsPrepare a correct detailed multiple-step income statement.
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