On December 31, 20Y5, the balances of the accounts appearing in the ledger of Wyman Company are as follows: $ 13,500 Dividends $ 25,000 3,280,000 Cash Accounts Receivable 72,000 Sales Inventory, January 1, 20Y5 Estimated Returns Inventory, January 1, 20Y5 Office Supplies 257,000 Purchases 2,650,000 Purchases Returns and Allowances Purchases Discounts 93,000 35,000 37,000 3,000 Freight In 4,500 Sales Salaries Expense 48,000 Prepaid Insurance 300,000 Land 150,000 Advertising Expense 270,000 Delivery Expense 45,000 9,000 Store Equipment Accumulated Depreciation- Store Equipment Office Equipment Depreciation Expense- Store Equipment 55,900 6,000 78,500 Miscellaneous Selling Expense Office Salaries Expense 12,000 Accumulated Depreciation- Office Equipment Accounts Payable Salaries Payable Customer Refunds Payable 175,000 16,000 Rent Expense Insurance Expense Office Supplies Expense 28,000 77,800 3,000 3,000 2,000 50,000 Depreciation Expense- Unearned Rent 8,300 Office Equipment 1,500 Notes Payable 50,000 Miscellaneous Administrative Expense 3,500 Common Stock 150,000 Rent Revenue 7,000 Retained Earnings 365,600 Interest Expense 2,000 Instructions - Does Wyman Company use a periodic or perpetual inventory system? Explain. 1. 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 20Y5. The inventory as of December 31, 20Y5, was $305,000. The estimated cost of cus- tomer returns inventory for December 31, 20Y5, is estimated to increase to $40,000. 3. Prepare the closing entries for Wyman Company as of December 31, 20Y5. 4. What would be the net income if the perpetual inventory system had been used?
On December 31, 20Y5, the balances of the accounts appearing in the ledger of Wyman Company are as follows: $ 13,500 Dividends $ 25,000 3,280,000 Cash Accounts Receivable 72,000 Sales Inventory, January 1, 20Y5 Estimated Returns Inventory, January 1, 20Y5 Office Supplies 257,000 Purchases 2,650,000 Purchases Returns and Allowances Purchases Discounts 93,000 35,000 37,000 3,000 Freight In 4,500 Sales Salaries Expense 48,000 Prepaid Insurance 300,000 Land 150,000 Advertising Expense 270,000 Delivery Expense 45,000 9,000 Store Equipment Accumulated Depreciation- Store Equipment Office Equipment Depreciation Expense- Store Equipment 55,900 6,000 78,500 Miscellaneous Selling Expense Office Salaries Expense 12,000 Accumulated Depreciation- Office Equipment Accounts Payable Salaries Payable Customer Refunds Payable 175,000 16,000 Rent Expense Insurance Expense Office Supplies Expense 28,000 77,800 3,000 3,000 2,000 50,000 Depreciation Expense- Unearned Rent 8,300 Office Equipment 1,500 Notes Payable 50,000 Miscellaneous Administrative Expense 3,500 Common Stock 150,000 Rent Revenue 7,000 Retained Earnings 365,600 Interest Expense 2,000 Instructions - Does Wyman Company use a periodic or perpetual inventory system? Explain. 1. 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 20Y5. The inventory as of December 31, 20Y5, was $305,000. The estimated cost of cus- tomer returns inventory for December 31, 20Y5, is estimated to increase to $40,000. 3. Prepare the closing entries for Wyman Company as of December 31, 20Y5. 4. What would be the net income if the perpetual inventory system had been used?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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Transcribed Image Text:On December 31, 20Y5, the balances of the accounts appearing in the ledger of Wyman Company
are as follows:
$ 13,500 Dividends
$ 25,000
3,280,000
Cash
Accounts Receivable
72,000
Sales
Inventory, January 1, 20Y5
Estimated Returns Inventory,
January 1, 20Y5
Office Supplies
257,000 Purchases
2,650,000
Purchases Returns and Allowances
Purchases Discounts
93,000
35,000
37,000
3,000 Freight In
4,500 Sales Salaries Expense
48,000
Prepaid Insurance
300,000
Land
150,000 Advertising Expense
270,000 Delivery Expense
45,000
9,000
Store Equipment
Accumulated Depreciation-
Store Equipment
Office Equipment
Depreciation Expense-
Store Equipment
55,900
6,000
78,500
Miscellaneous Selling Expense
Office Salaries Expense
12,000
Accumulated Depreciation-
Office Equipment
Accounts Payable
Salaries Payable
Customer Refunds Payable
175,000
16,000
Rent Expense
Insurance Expense
Office Supplies Expense
28,000
77,800
3,000
3,000
2,000
50,000 Depreciation Expense-
Unearned Rent
8,300
Office Equipment
1,500
Notes Payable
50,000 Miscellaneous Administrative Expense
3,500
Common Stock
150,000
Rent Revenue
7,000
Retained Earnings
365,600 Interest Expense
2,000
Instructions
- Does Wyman Company use a periodic or perpetual inventory system? Explain.
1.
2. Prepare a multiple-step income statement for Wyman Company for the year ended December
31, 20Y5. The inventory as of December 31, 20Y5, was $305,000. The estimated cost of cus-
tomer returns inventory for December 31, 20Y5, is estimated to increase to $40,000.
3. Prepare the closing entries for Wyman Company as of December 31, 20Y5.
4. What would be the net income if the perpetual inventory system had been used?
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