Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 3, Problem 4ATC
a.
To determine
Prepare a memo to the president of Corporation BF.
b.
To determine
Determine why there is a need to record the return on January 1, 2019 instead of December 31.
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Students have asked these similar questions
Direction: The following list of accounts for Pazado, Inc is available at the end of December 2020. Make a
summary of Income Statement from the given information below with the following required data.
1. Calculate the turnover/ROI
2. Calculate the consumption of goods for sale
3. Prepare the Income Statement of Pazado, Inc for year 2020.
Sales
Rent Expense
Depreciation Expense
Utilities Expense
Taxes and Licenses
Goods Available for Sale
Merchandise, Inventory, January 31
Salaries Expense
Freight, out
Uncollectible Accounts
Sales Discount
Sales Returns and Allowance
902,000
30,000
11,250
18,000
15,000
714,900
102,000
50,000
3.920
19,100
5,000
13,000
ASSESSMENT:
Problem #1: On June 30, 2020, PSA Trading Co. has the following informatign:
revenue from sales is Po8,760; sales return is P35,50o; cost of goods sold is P8.490:
salaries cost P 14,600; rent is P8,090; light and water expenses are P7.550 and
miscellaneous expenses are Po,520.Generate an income statement and find:
a. Gross Profit
b. Net Profit or Loss
Problem #2: AMA 6operative store had the following activities for year ended
2021: gross sales amounting to Po4,653, the cost of goods sold was P48,923, the
operating expensés were, P8,723.15, and refunds for defective goods amounted to
P26,497.15. Generate an income slatemeni and find:
a. Net Sales
b. Gross Profit
c. Net Profit
Problem #3: AMA cooperative store had the following activities for year ended 2021:
gross sales amounting to P94,653, the cost of goods sold was P48,923, the operating
expenses were, P8,723.15, and refunds for defective goods amounted to P26,497.15.
Generate an income statement and find:
a. Net Sales…
Preparation of SCI for a Merchandising Business Using the Multistep Approach
Instructions:
Prepare a Statement of Comprehensive Income for the year ended December 31,2020 the using the following account titles listed.
Cost of Sales ₱2,675,000
Depreciation expense ₱105,000
Rent expense ₱240,000
Salaries expense ₱360,000
Sales Discount ₱826,500
Sales Returns and Allowances ₱275,500
Sales ₱5,510,000
Supplies expense ₱540,000
Taxes ₱92,400
Utilities expense ₱180,000
Chapter 3 Solutions
Survey Of Accounting
Ch. 3 - 1. Define merchandise inventory. What types of...Ch. 3 - 2. What is the difference between a product cost...Ch. 3 - 3. How is the cost of goods available for sale...Ch. 3 - 4. What portion of cost of goods available for...Ch. 3 - 5. When are period costs expensed? When are...Ch. 3 - 6. If PetCo had net sales of 600,000, goods...Ch. 3 - Prob. 7QCh. 3 - 8. What are the effects of the following types of...Ch. 3 - 9. Northern Merchandising Company sold inventory...Ch. 3 - 10. If goods are shipped FOB shipping point, which...
Ch. 3 - 11. Define transportation-in. Is it a product or a...Ch. 3 - Prob. 12QCh. 3 - Prob. 13QCh. 3 - 14. Dyer Department Store purchased goods with the...Ch. 3 - 15. Eastern Discount Stores incurred a 5,000 cash...Ch. 3 - 16. What is the purpose of giving credit terms to...Ch. 3 - Prob. 17QCh. 3 - 18. Ball Co. purchased inventory with a list price...Ch. 3 - 22. Explain the difference between purchase...Ch. 3 - Prob. 20QCh. 3 - Prob. 21QCh. 3 - 25. What is the advantage of using common size...Ch. 3 - 27. What is the purpose of preparing a schedule of...Ch. 3 - 28. Explain how the periodic inventory system...Ch. 3 - Prob. 25QCh. 3 - Exercise 3-1 Determining the cost of financing...Ch. 3 - Exercise 3-2 Comparing a merchandising company...Ch. 3 - Exercise 3-3 Effect of inventory transactions on...Ch. 3 - Exercise 3-4 Effect of inventory transactions on...Ch. 3 - Exercise 3-5 Recording inventory transactions in a...Ch. 3 - Exercise 4-6A Understanding the freight terms FOB...Ch. 3 - Exercise 3-7 Effect of purchase returns and...Ch. 3 - Exercise 3-8 Accounting for product costs:...Ch. 3 - Effect of product cost and period cost: Horizontal...Ch. 3 - Cash Discounts and Purchase Returns On April 6,...Ch. 3 - Exercise 4-9A Determining the effect of inventory...Ch. 3 - Inventory financing costs Bill Norman comes to you...Ch. 3 - Effect of shrinkage: Perpetual system Ho Designs...Ch. 3 - Comparing gross margin and gain on sale of land...Ch. 3 - Single-step and multistep income statements The...Ch. 3 - Prob. 16ECh. 3 - Effect of cash discounts on financial statements:...Ch. 3 - Using common size statements and ratios to make...Ch. 3 - Prob. 19ECh. 3 - Determining cost of goods sold: Periodic system...Ch. 3 - Identifying product and period costs Required...Ch. 3 - Problem 4-23A Identifying freight costs Required...Ch. 3 - Effect of purchase returns and allowances and...Ch. 3 - Preparing a schedule of cost of goods sold and...Ch. 3 - Prob. 25PCh. 3 - Comprehensive cycle problem: Perpetual system At...Ch. 3 - Prob. 27PCh. 3 - Comprehensive cycle problem: Periodic system...Ch. 3 - Prob. 1ATCCh. 3 - ATC 3-2 Group Exercise Multistep income statement...Ch. 3 - Prob. 3ATCCh. 3 - Prob. 4ATC
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- The following select account data is taken from the records of Reese Industries for 2019. A. Use the data provided to compute net sales for 2019. B. Prepare a simple income statement for the year ended December 31, 2019. C. Compute the gross margin for 2019. D. Prepare a multi-step income statement for the year ended December 31, 2019.arrow_forwardANALYSIS OF ACTIVITY MEASURES Based on the financial statement data in Exercise 24-1B, compute the following activity measures for 20-2 (round all calculations to two decimal places): (a) Accounts receivable turnover (b) Merchandise inventory turnover (c) Asset turnoverarrow_forwardThe following select account data is taken from the records of Carnival Express for 2019. A. Use the data provided to compute net sales for 2019. B. Prepare a simple income statement for the year ended December 31, 2019. C. Compute the gross margin for 2019. D. Prepare a multi-step income statement for the year ended December 31, 2019.arrow_forward
- Review the select information for Bean Superstore and Legumes Plus (industry competitors), and then complete the following. A. Compute the accounts receivable turnover ratios for each company for 2018 and 2019. B. Compute the number of days sales in receivables ratios for each company for 2018 and 2019. C. Determine which company is the better investment and why. Round answers to two decimal places.arrow_forwardReview the select information for Liquor Plaza and Beer Buddies (industry competitors) and complete the following. A. Compute the accounts receivable turnover ratios for each company for 2018 and 2019. B. Compute the number of days sales in receivables ratios for each company for 2018 and 2019. C. Determine which company is the better investment and why. Round answers to two decimal places.arrow_forwardMultiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2019: Cash $116,600 Gerri Faber, Drawing $69,800 Accounts Receivable 311,000 Sales 4,216,400 Merchandise Inventory 354,500 Cost of Merchandise Sold 2,470,900 Estimated Returns Inventory 14,000 Sales Salaries Expense 694,800 Office Supplies 11,000 Advertising Expense 191,100 Prepaid Insurance 8,500 Depreciation Expense—Store Equipment 37,200 Office Equipment 256,700 Miscellaneous Selling Expense 16,300 Accumulated Depreciation—Office Equipment 174,400 Office Salaries Expense 379,300 Store Equipment 801,200 Rent Expense 56,000 Accumulated Depreciation—Store Equipment 256,700 Insurance Expense 17,400 Accounts Payable 177,600 Depreciation Expense—Office Equipment 28,000 Customer Refunds Payable 28,000 Office Supplies Expense 10,300 Salaries Payable…arrow_forward
- Multiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2019: Cash $112,500 Gerri Faber, Drawing $67,400 Accounts Receivable 302,600 Sales 4,066,600 Merchandise Inventory 341,900 Cost of Merchandise Sold 2,383,000 Estimated Returns Inventory 13,500 Sales Salaries Expense 670,100 Office Supplies 10,600 Advertising Expense 184,300 Prepaid Insurance 8,200 Depreciation Expense—Store Equipment 35,900 Office Equipment 247,500 Miscellaneous Selling Expense 15,700 Accumulated Depreciation—Office Equipment 168,200 Office Salaries Expense 365,800 Store Equipment 772,700 Rent Expense 54,000 Accumulated Depreciation—Store Equipment 247,500 Insurance Expense 16,800 Accounts Payable 171,300 Depreciation Expense—Office Equipment 27,000 Customer Refunds Payable 27,000 Office Supplies Expense 9,900 Salaries Payable…arrow_forwardSales Cost of goods sold Sales returns and allowances Operating expenses: Thompson's Company Income Statement For the Month Ended August 31, 2021 Net income $ 6,700 1,100arrow_forwardMultiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2019: Cash $119,700 Gerri Faber, Drawing $71,600 Accounts Receivable 319,000 Sales 4,325,900 Merchandise Inventory 363,700 Cost of Merchandise Sold 2,535,000 Estimated Returns Inventory 14,350 Sales Salaries Expense 712,900 Office Supplies 11,300 Advertising Expense 196,000 Prepaid Insurance 8,700 Depreciation Expense—Store Equipment 38,200 Office Equipment 263,300 Miscellaneous Selling Expense 16,700 Accumulated Depreciation—Office Equipment 178,900 Office Salaries Expense 389,200 Store Equipment 822,000 Rent Expense 57,500 Accumulated Depreciation—Store Equipment 263,300 Insurance Expense 17,800 Accounts Payable 182,200 Depreciation Expense—Office Equipment 28,700 Customer Refunds Payable 28,700 Office Supplies Expense 10,500 Salaries Payable…arrow_forward
- Multiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2019: Cash $119,700 Gerri Faber, Drawing $71,600 Accounts Receivable 319,000 Sales 4,325,900 Merchandise Inventory 363,700 Cost of Merchandise Sold 2,535,000 Estimated Returns Inventory 14,350 Sales Salaries Expense 712,900 Office Supplies 11,300 Advertising Expense 196,000 Prepaid Insurance 8,700 Depreciation Expense—Store Equipment 38,200 Office Equipment 263,300 Miscellaneous Selling Expense 16,700 Accumulated Depreciation—Office Equipment 178,900 Office Salaries Expense 389,200 Store Equipment 822,000 Rent Expense 57,500 Accumulated Depreciation—Store Equipment 263,300 Insurance Expense 17,800 Accounts Payable 182,200 Depreciation Expense—Office Equipment 28,700 Customer Refunds Payable 28,700 Office Supplies Expense 10,500 Salaries Payable…arrow_forwardMultiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2019: Cash $120,200 Gerri Faber, Drawing $72,000 Accounts Receivable 326,200 Sales 4,344,900 Merchandise Inventory 365,300 Cost of Merchandise Sold 2,546,100 Estimated Returns Inventory 14,450 Sales Salaries Expense 716,000 Office Supplies 11,300 Advertising Expense 196,900 Prepaid Insurance 8,800 Depreciation Expense—Store Equipment 38,400 Office Equipment 264,500 Miscellaneous Selling Expense 16,800 Accumulated Depreciation—Office Equipment 179,700 Office Salaries Expense 390,900 Store Equipment 825,600 Rent Expense 57,700 Accumulated Depreciation—Store Equipment 264,500 Insurance Expense 17,900 Accounts Payable 183,000 Depreciation Expense—Office Equipment 28,900 Customer Refunds Payable 28,900 Office Supplies Expense 10,600 Salaries Payable…arrow_forwardWindow World Company's income statement for the year ending December 31, 2024 included the following items: Interest revenue $65,500 Salaries expense 85,000 Cost of goods sold 217,600 The following balances have been excerpted from the company's comparative balance sheets: 31-Dec-24 31-Dec-23 Interest receivable $9,100 $7,500 Salaries payable 8,900 4,200 Accounts payable 12,700 10,900 Inventory 36,100 32,500 The amount of cash paid by the companies for salaries in 2024 was Select one: $89,700. $93,900. $80,300. $80,800.arrow_forward
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