ACC 201 Study Guide - Final Guide: Net Income, Retained Earnings, Contract
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Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $8,797). $11,200 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition), for cash refund (original cost of merchandise $60). 100 c. Sold merchandise (costing $2,375) to a customer, on account with terms 2/10, n/30. 5,000 d. Collected half of the balance owed by the customer in (c) within the discount period. 2,450 e. Granted a partial allowance relating to credit sales that the customer in (c) had not yet paid 80
1.
Compute Sales Revenue, Net Sales, and Gross Profit for Hair World. 2.
|
Cash | 37500 | |
Accounts Receivable | 28600 | |
Inventory | 43300 | |
Prepaid Rent | 2000 | |
Equipment | 69000 | |
Accumulated Depreciation | 20700 | |
Accounts Payable | 8800 | |
Unearned Fees | 20000 | |
Long Term Notes payable | 75000 | |
J Noodle Capitol | 31800 | |
Sales Revenue | 175500 | |
Sales Returns and allowances | 4700 | |
Sales Discounts | 6000 | |
Cost of Goods Sold | 67700 | |
Salaries and Wages expense | 25900 | |
Depreciation expense | 13800 | |
Rent Expense | 24000 | |
Interest Expense | 1600 | |
Loss on Sale of Equipment | 7700 | |
Totals | 331800 | 331800 |
1. Prepare a multistep income statement that will be used for internal reporting purposes | ||
Note:When more than one correct account could appear in a cell, list items in order of | ||
Largest to smallest dollar amounts. Use cell referencing to select account titles and values. | ||
All numbers should appear as positive numbers. | ||
2. After entering the formula in the cell B52 use the Excel | ||
IF function to label cell A52 as either income or net loss as appropriate based on the value calculated in cell B52. | ||
Noodles Unlimited Income statement | ||
For the Year Ended December 31 20X1 | ||
Less: | ||
Net Sales: | ||
Gross Profit | ||
Expenses: | ||
Income from Operations | ||
Other Expenses and Losses | ||
3. Compute the Gross Profit Percentage. | ||
Note: Make sure to include *100 at the end of your formula | ||
In order to convert the decimal to a percentage | ||
Gross Profit Percentage |
QUESTION 1
The ownership of a corporation is represented by:
shares of stock. | ||
the owner's capital account. | ||
the revenue account. | ||
cash in bank account. |
QUESTION 2
How many classifications does a Capital Stock Account have?
One | ||
Two | ||
Three | ||
Four |
QUESTION 3
The equity contributed by stockholders and equity earned throughbusiness profits represent the stockholders' equity for a:
partnership firm. | ||
sole proprietorship. | ||
corporation. | ||
none of these. |
QUESTION 4
Retained earnings are a part of a/an:
asset account. | ||
permanent account. | ||
stockholders' equity account. | ||
temporary account. |
QUESTION 5
How many sections does an Income Statement have?
Two | ||
Three | ||
Four | ||
Five |
QUESTION 6
Net sales are related to the:
net income section. | ||
gross profit on sales section. | ||
revenue section. | ||
cost of merchandise sold section. |
QUESTION 7
Sales discount and sales return and allowance are:
revenue accounts. | ||
contra revenue accounts. | ||
permanent accounts. | ||
contra expenses accounts. |
QUESTION 8
The total cost related to merchandise purchases during anaccounting period is the:
net purchase. | ||
cost of merchandise sold. | ||
cost of merchandise available for sale. | ||
beginning merchandise inventory. |
QUESTION 9
The gross profit on sale is $65,000, and operating expenses is$35,000. What will be the operating profit?
$65,000 | ||
$35,000 | ||
$100,000 | ||
$30,000 |
QUESTION 10
A balance sheet has the following sections:
Assets, liabilities, and stockholders' equity. | ||
Income, expenses, and stockholders' equity. | ||
Assets, liabilities, and income. | ||
Operating income, operating expenses, and stockholders'equity. |
QUESTION 11
A cash flow statement is used to assess the:
net increase or decrease of cash. | ||
net increases of cash only. | ||
net decrease of cash only. | ||
net profit or loss of business. |