prepare an income statement for the current year using the functional presentation with supporting notes.
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prepare an income statement for the current year using the functional presentation with supporting notes.
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- Problem 10-6 (IAA) / Autumn Company provided the following transactions for the current year, the first year of operations. 1. Purchase of merchandise at an invoice price of P4,750,000 excluding freight. Terms are 2/10; n /30. 2. Freight paid, P250,000. The freight is allocated to each purchase. 3. Cash payment on purchases, P3,717,000, of which P1,617,000 was paid within the discount period. 4. It is expected that all discounts on unpaid accounts payable will be lost. 5. On December 31, one fifth of the merchandise remains on hand. Required: a. Prepare journal entries to record the transactions using gross method and net method. b. Compute inventory and cost of sales under each method.Problem 1- Pertinent accounts gathered from the record of ABC Corporation for 2020 are as follows:Purchases 5,250,000Purchase returns and allowances 150,000 Rental income 250,000 Freight out 175,000Salesmen's commissions 650,000Depreciation- store equipment 125,000Inventory, January 1 1,000,000Inventory, December 31 1,500,000 Sales 7,850,000Sales returns and allowances 140,000 Sales discounts…What is the estimated cost of goods sold for the current year? Problem 13-3 (AICPA Adapted) The following information is available for the current year: Wecent history, the entity had a gross profit of 25% on sales. Beginning inventory Purchases Purchase returns Sales Sales returns Sales allowances Uhat is the estimated cost of goods sold for the current year? 520,000 4,120,000 60,000 5,600,000 400,000 100,000 a. 3,360,000 b. 3,830,000 c. 3,900,000 d. 3,825,000
- Required information For Year Ended December 31 Sales Cost of goods sold Other operating expenses Current Year $ 411, 225 209,550 12, 100 9,525 $ 673,500 642, 400 $31,100 $ 1.90 :. -. - == ....... 9 US Sa MQUESTION 1The following are extracts of the income statement and the statement of financial position forMorula Industries.STATEMENT OF INCOME FOR THE YEAR ENDED 31 DECEMBER 2019PulaSales 500,000Less Cost of sales:Opening inventory 120,000Purchases 415,000Cost of goods available for sale 535,000Closing inventory (115,000) (420,000)Gross profit 80,000Operating expenses (40,000)Net surplus for the year 40,000 STAMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019PulaCurrent assetsInventory 115,000Receivables 133,000Bank overdraft 124,000Current LiabilitiesPayables 96,000Capital and reservesShare capital 70,000General reserve 110,000Retained profit 110,000Additional Information The receivables and payables opening balances were P50, 000 each. All sales and purchases were made on credit.Required:a. Calculate the:i. Average payment period. ii. Average age of inventory. iii. Average collection period. iv. Cash conversion cycle. b. Explain five strategies that can improve the cash conversion…Problem 13-11 (IAA) Fairy Company provided the following information: 2020 2021 Sales Beginning inventory Purchases Freight in Purchase discounts Purchase returns Purchase allowances Ending inventory 7,500,000 1,260,000 6,450,000 350,000 90,000 120,000 20,000 2,355,000 4,500,000 3,180,000 220,000 45,000 40,000 15,000 What amount should be reported as inventory on December 31, 2021? a. 2,370,000 b. 2,025,000 c. 3,285,000 d. 2,505,000 07
- Question The income statement of Cheyenne Company is shown below. CHEYENNE COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,890,000 Cost of goods sold Beginning inventory $1,910,000 Purchases 4,410,000 Goods available for sale 6,320,000 Ending inventory 1,620,000 Cost of goods sold 4,700,000 Gross profit 2,190,000 Operating expenses Selling expenses 460,000 Administrative expenses 700,000 1,160,000 Net income $1,030,000 Additional information: 1. Accounts receivable decreased $350,000 during the year. 2. Prepaid expenses increased $160,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $300,000 during the year. 4. Accrued expenses payable decreased $90,000 during the year. 5. Administrative expenses include depreciation expense of…#10: Accounts Payable, beg. 70,000.00; Accounts Payable, end 75,000.00; Merchandise Inventory, beg - 350,000.00; Merchandise Inventory, end 175,000.00; Cash Payment to Supplier for Purchase on Account, 560,000.00. Fifty percent (50%) of Merchandise Inventory Purchases for the year are made on account. The total cost of goods are sold amounted to __________ (Round your answers to the nearest 2 decimal places)Problem 13-02A (Video) The comparative statements of Cullumber Company are presented here: Cullumber CompanyIncome StatementsFor the Years Ended December 31 2020 2019 Net sales $1,891,640 $1,751,600 Cost of goods sold 1,059,640 1,007,100 Gross profit 832,000 744,500 Selling and administrative expenses 501,100 480,100 Income from operations 330,900 264,400 Other expenses and losses Interest expense 23,700 21,700 Income before income taxes 307,200 242,700 Income tax expense 93,700 74,700 Net income $213,500 $168,000 Cullumber CompanyBalance SheetsDecember 31 Assets 2020 2019 Current assets Cash $60,100 $64,200 Debt investments (short-term) 74,000 50,000 Accounts receivable 118,900 103,900 Inventory 127,700 117,200 Total current assets 380,700 335,300 Plant assets (net)…
- Problem 10-23 (IAA) A physical count on December 31, 2021 revealed that Joy Company had inventory with a cost of P4,410,000. The following items were excluded from this amount: • Merchandise of P610,000 is held by Joy Company on consignment. • Merchandise costing P380,000 was shipped by Joy Company FOB destination to a customer on December 31, 2021. The customer was expected to receive the goods on January 5, 2022. * Merchandise costing P460,000 was shipped by Joy Company FOB shipping point to a customer on December 29, 2021. The customer was expected to receive the goods on January 10, 2022. Merchandise costing P830,000 ahipped by a vendor FOB destination on December 31, 2021 was received by Joy Company on January 15, 2022. Merchandise costing P510,000 purchased FOB shipping point was shipped by the supplier on December 31, 2021 and received by Joy on January 5, 2022. What amount of inventory ahould be reported on December 31, 2021? a. 5,300,000 b. 4,690,000 e. 3,800,000 d. 4,920,0005) Pertinent accounts gathered from the records of Heart Company for the year 2021 are given below: Purchases P 5,250,000.00 Sales P 8,000,000.00 Purchase returns and allowances 150,000.00 Sales returns and allowances 140,000.00 Freight-In 500,000.00 Sales discounts 10,000.00 Salesmen's commissions 650,000.00 Officer's salaries 200,000.00 Depreciation-Office equipment Depreciation-Warehouse Depreciation-Store equipment 125,000.00 15,000.00 Inventory, January 1 1,000,000.00 35,000.00 Inventory, December 31 Rental expense-Store 1,500,000.00 Utilities 55,000.00 35,000.00 Delivery expense 20,000.00 Prepare the Statement of Comprehensive Income (Multi-Step Format) of Heart Company for the year ended December 31, 2021.Module 3 MI Assessment.doc Prepare journal entries to record the transactions using gross method and net method: compute for change inventory, beginning inventory, cost of sales and net purchases under each method Autumn Company provided the following transactions for the current year, the first year of operations. Purchase of merchandise at an invoice price of 4,750,000 excluding freight. Terms are 2/10, n/30. b. Freight paid, 250,000. The freight is allocated to each purchase. c. Cash payment on purchases 3,717,000 of which 1,617,000 was paid within the discount period. d. It is expected that all discounts on unpaid accounts payable will be lost. On December 31, one fifth of the merchandise remains on hand. f. Assuming at the end of the accounting period no payment was made, what is the corresponding journal I. а. е. entry. Using the information of Autumn Company: prepare journal entries to record the transactions using gross method and net method: compute for accounts receivable and…