Scribd Logo
Upload

Welcome to Scribd!

  • ACC 225 Week 6 Problem 5-4A

    Uploaded by

    Praveen Sudarsan
    68 views2 pages
    Net sales: sales. Less: Sales discounts. Sales returns and allowances. Net sales. Cost of goods sold: merchandise purchased. Purchase discounts received. Purchase returns and allowance. Costs of transportation-in. Gross profit. Expenses Selling expenses sales salaries expense. Rent expense--Selling space. Store supplies expense. Advertising expense. Total selling expenses. General and administrative expenses Office salaries expense. Rent expense--Office space. Office supplies expense. Net income.

    Original Description:

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOC, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Net sales: sales. Less: Sales discounts. Sales returns and allowances. Net sales. Cost of goods sold: merchandise purchased. Purchase discounts received. Purchase returns and allowance. Costs of transportation-in. Gross profit. Expenses Selling expenses sales salaries expense. Rent expense--Selling space. Store supplies expense. Advertising expense. Total selling expenses. General and administrative expenses Office salaries expense. Rent expense--Office space. Office supplies expense. Net income.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    68 views2 pages

    ACC 225 Week 6 Problem 5-4A

    Uploaded by

    Praveen Sudarsan
    Net sales: sales. Less: Sales discounts. Sales returns and allowances. Net sales. Cost of goods sold: merchandise purchased. Purchase discounts received. Purchase returns and allowance. Costs of transportation-in. Gross profit. Expenses Selling expenses sales salaries expense. Rent expense--Selling space. Store supplies expense. Advertising expense. Total selling expenses. General and administrative expenses Office salaries expense. Rent expense--Office space. Office supplies expense. Net income.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Problem 5-4A)

    1. Net sales:
    Sales...........................................................................................
    Less: Sales discounts...........................................................
    Sales returns and allowances...................................
    Net sales....................................................................................

    $212,000
    (3,250)
    (14,000)
    $194,750

    2. Cost of Merchandise purchased:


    Invoice cost of merchandise purchased.................................
    Purchase discounts received...................................................
    Purchase returns and allowances...........................................
    Costs of transportation-in.......................................................
    Total cost of merchandise purchased.....................................

    $ 91,000
    (1,900)
    (4,400)
    3,900
    $ 88,600

    3. Multiple-step income statement


    BIZKID COMPANY
    Income Statement
    For Year Ended August 31, 2005
    Sales....................................................................................
    Less: Sales discounts.........................................................
    Sales returns and allowances................................
    Net sales..............................................................................
    Cost of goods sold *...........................................................
    Gross profit........................................................................
    Expenses
    Selling expenses
    Sales salaries expense....................................................
    Rent expenseSelling space........................................
    Store supplies expense..................................................
    Advertising expense......................................................
    Total selling expenses....................................................
    General and administrative expenses
    Office salaries expense..................................................
    Rent expenseOffice space.........................................
    Office supplies expense.................................................
    Total general and administrative expenses.................

    $212,000
    $ 3,250
    14,000

    17,250
    194,750
    82,600
    112,150

    29,000
    10,000
    2,500
    18,000
    59,500
    26,500
    2,600
    800
    29,900

    Total expenses..................................................................
    Net income.........................................................................

    89,400
    $ 22,750

    *Cost of goods sold (alternative computation):


    Merchandise inventory, August 31, 2004.................... $ 25,000
    Total cost of merchandise purchased (from part 2)... 88,600
    Merchandise available for sale..................................... 113,600
    Merchandise inventory, August 31, 2005.................... 31,000
    Cost of goods sold.......................................................... 82,600
    4. Single-step income statement
    BIZKID COMPANY
    Income Statement
    For Year Ended August 31, 2005
    Net sales....................................................................................
    Expenses
    Cost of goods sold.................................................................
    Selling expenses....................................................................
    General and administrative expenses.................................
    Total expenses.......................................................................
    Net income...............................................................................

    $194,750
    $82,600
    59,500
    29,900
    172,000
    $ 22,750

    You might also like