Based on the following transactions, answer the following questions. i. Inventory costing $57,400 was purchased on account. Inventory costing $49,200 was sold for $82,000. Eighty percent of the sales were for cash. Cash collected from credit customers (those who bought on account) totalled $16,400. A lease was signed at the beginning of the year, requiring monthly payments of $800. The rent for the first month was paid when the lease was signed. After that, the $800 rent was paid on the last day of each month, to cover the following month. Supplies costing $4,500 were purchased for cash. At the end of the year, $400 of the supplies were still unused. Wages of $30,800 were paid during the year. Also, wages of $400 remained unpaid at year end. ii. iii. iv. V. vi. (a) - Your answer is partially correct. Calculate the revenues, expenses, and net income that would be reported on the cash basis. (Enter loss amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Expenses Net Income /(Loss) $ 82,000 44,700 37,300

Based on the following transactions, answer the following questions. i. Inventory costing $57,400 was purchased on account. Inventory costing $49,200 was sold for $82,000. Eighty percent of the sales were for cash. Cash collected from credit customers (those who bought on account) totalled $16,400. A lease was signed at the beginning of the year, requiring monthly payments of $800. The rent for the first month was paid when the lease was signed. After that, the $800 rent was paid on the last day of each month, to cover the following month. Supplies costing $4,500 were purchased for cash. At the end of the year, $400 of the supplies were still unused. Wages of $30,800 were paid during the year. Also, wages of $400 remained unpaid at year end. ii. iii. iv. V. vi. (a) - Your answer is partially correct. Calculate the revenues, expenses, and net income that would be reported on the cash basis. (Enter loss amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Expenses Net Income /(Loss) $ 82,000 44,700 37,300

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 7EA: Homeland Plus specializes in home goods and accessories. In order for the company to expand its...

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