Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
5th Edition
ISBN: 9780134078939
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 5, Problem 5.35AP
Preparing a single-step income statement, preparing a multi-step income statement, and computing the gross profit percentage
The records of Quality Cut Steak Company list the following selected accounts for the quarter ended April 30, 2016:
| Interest Revenue | $ 500 |
| Merchandise Inventory | 45,300 |
| Notes Payable, long-term | 52,000 |
| Salaries Payable | 2,400 |
| Sales Discounts | 5,500 |
| Sales Returns and Allowances | 8,500 |
| Sales Revenue | 306,000 |
| Rent Expense (Selling) | 21,400 |
| Office Supplies | 6,300 |
| Unearned Revenue | 13,200 |
| Interest Expense | 1,700 |
| 1,300 | |
| Utilities Expense (Administrative) | 4,300 |
| Accounts Payable | $ 16,900 |
| Accounts Receivable | 38,000 |
| 36,800 | |
| Common Stock | 32,000 |
| Retained Earnings | 10,200 |
| Dividends | 17,000 |
| Cash | 7,400 |
| Cost of Goods Sold | 160,600 |
| Equipment | 130,000 |
| Interest Payable | 1,000 |
| Rent Expense (Administrative) | 9,600 |
| Utilities Expense (Selling) | 10,600 |
| Delivery Expense (Selling) | 3,500 |
Requirements
1. Prepare a single-step income statement.
2. Prepare a multi-step income statement.
3. M. Doherty, manager of the company, strives to earn a gross profit percentage of at least 50%. Did Quality Cut achieve this goal? Show your calculations.
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Conrad Company reported the following balances at June 30, 2015:
$16,200
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Sales Returns and
600
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Sales Discounts
300
Cost of Goods Sold
7,500
Net sales for the month is
O a)
$15,600.
O b) $15,300.
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d) $16,200.
The Income Statement columns of the August 31 (year-end) work sheet for Ralley Company are shown here. To save time and space, the expenses have been grouped together into two categories.
INCOME STATEMENT
ACCOUNT NAME
DEBIT
CREDIT
Income Summary
32,000.00
31,000.00
Sales
324,000.00
Sales Returns and Allowances
13,310.00
Sales Discounts
7,700.00
Purchases
126,360.00
Purchases Returns and Allowances
1,200.00
Purchases Discounts
1,300.00
Freight In
7,500.00
Selling Expenses
61,560.00
General Expenses
50,884.00
299,314.00
357,500.00
Net Income
58,186.00
357,500.00
357,500.00
From the information given, prepare an income statement for the company.
Ralley Company
Income Statement
For Year Ended August 31, 20--
Revenue from Sales:
$fill in the blank 2
$fill in the blank 4
fill in the blank 6
fill in the blank 7
Net Sales
$fill in…
Presented below is information for Oakley Company for the month of March 2020.
Cost of goods sold
$254,000
Rent expense
$36,000
Freight-out
7,500
Sales discounts
8,800
Insurance expense
5,000
Sales returns and allowances
11,000
Salaries and wages expense
75,000
Sales revenue
425,000
Prepare a multiple-step income statement.
OAKLEY COMPANYIncome Statement For the Year Ended March 31, 2016March 31, 2020For the Month Ended March 31, 2020
Owner's Capital, March 31Operating ExpensesNet Income / (Loss)RevenuesGross Profit / (Loss)InvestmentsOwner's Capital, March 1Net SalesTotal Operating ExpensesDrawings
$
LessAdd:
$…
Chapter 5 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Ch. 5 - Which account does a merchandiser use that a...Ch. 5 - The two main inventory accounting systems are the...Ch. 5 - The journal entry for the purchase of inventory on...Ch. 5 - JC Manufacturing purchase d inventory for 5,300...Ch. 5 - Prob. 5QCCh. 5 - Suppose Daves Discounts Merchandise Inventory...Ch. 5 - Which of the following accounts would be closed at...Ch. 5 - What is the order of the subtotals that appear on...Ch. 5 - Prob. 9QCCh. 5 - The journal entry for the purchase of inventory on...
Ch. 5 - What is a merchandiser, and what is the name of...Ch. 5 - Prob. 2RQCh. 5 - Describe the operating cycle of a merchandiser.Ch. 5 - What is Cost of Goods Sold (COGS), and where is it...Ch. 5 - How is gross profit calculated, and what does it...Ch. 5 - What are the two types of inventory accounting...Ch. 5 - What is an invoice?Ch. 5 - What account is debited when recording a purchase...Ch. 5 - Prob. 9RQCh. 5 - What is a purchase return? How does a purchase...Ch. 5 - Prob. 11RQCh. 5 - How is the net cost of inventory calculated?Ch. 5 - What are the two journal entries involved when...Ch. 5 - When granting a sales allowance, is there a return...Ch. 5 - Prob. 15RQCh. 5 - Prob. 16RQCh. 5 - Prob. 17RQCh. 5 - What are the four steps involved in the closing...Ch. 5 - Prob. 19RQCh. 5 - Prob. 20RQCh. 5 - Prob. 21RQCh. 5 - Prob. 22RQCh. 5 - Prob. 23ARQCh. 5 - When recording purchase returns and purchase...Ch. 5 - What account is debited when recording the payment...Ch. 5 - Prob. 26ARQCh. 5 - Is an adjusting entry needed for inventory...Ch. 5 - Highlight the differences in the closing process...Ch. 5 - Describe the calculation of cost of goods sold...Ch. 5 - Comparing periodic and perpetual inventory systems...Ch. 5 - Journalizing purchase transactions Consider the...Ch. 5 - Journalizing purchase transactions Consider the...Ch. 5 - Journalizing sales transactions Journalize the...Ch. 5 - Journalizing purchase and sales transactions...Ch. 5 - Adjusting for inventory shrinkage Carlas...Ch. 5 - Journalizing closing entries Rockwall RV Centers...Ch. 5 - Use the following information to answer Short...Ch. 5 - Use the following information to answer Short...Ch. 5 - Computing the gross profit percentage Morris...Ch. 5 - Journalizing purchase transactions-periodic...Ch. 5 - Prob. 5.12SECh. 5 - Journalizing closing entries-periodic inventory...Ch. 5 - Computing cost of goods sold in a periodic...Ch. 5 - For all exercises, assume the perpetual inventory...Ch. 5 - Journalizing purchase transactions from an invoice...Ch. 5 - Journalizing purchase transactions Hartford...Ch. 5 - Computing missing amounts Consider the following...Ch. 5 - Journalizing sales transactions Journalize the...Ch. 5 - Journalizing purchase and sales transactions...Ch. 5 - Journalizing adjusting entries and computing gross...Ch. 5 - Use the following information to answer Exercises...Ch. 5 - Prob. 5.23ECh. 5 - Use the following information to answer Exercises...Ch. 5 - Computing the gross profit percentage Cupcake...Ch. 5 - Journalizing purchase transactionsperiodic...Ch. 5 - Journalizing sales transactions-periodic inventory...Ch. 5 - Journalizing purchase and sales...Ch. 5 - Journalizing dosing entries-periodic inventory...Ch. 5 - Computing cost of goods sold in a periodic...Ch. 5 - Journalizing purchase and sale transactions...Ch. 5 - Journalizing purchase and sale transactions...Ch. 5 - Preparing a multi-step income statement,...Ch. 5 - Journalizing adjusting entries, preparing adjusted...Ch. 5 - Preparing a single-step income statement,...Ch. 5 - Journalizing purchase and sale...Ch. 5 - A Preparing a multi-step income statement and...Ch. 5 - Journalizing purchase and sale transactions...Ch. 5 - Prob. 5.39BPCh. 5 - Prob. 5.40BPCh. 5 - Journalizing adjusting entries, preparing adjusted...Ch. 5 - Prob. 5.42BPCh. 5 - Prob. 5.43BPCh. 5 - Preparing a multi-step income statement and...Ch. 5 - Journalizing purchase and sale transactions,...Ch. 5 - Journalizing purchase and sale transactions,...Ch. 5 - Comprehensive Problem for Chapters 1-5 Completing...Ch. 5 - Prob. 5.1CTDCCh. 5 - Dobbs Wholesale Antiques makes all sales under...Ch. 5 - Rae Philippe was a warehouse manager for Atkins...Ch. 5 - Prob. 5.1CTFSC
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