Given the following information, prepare in good form the costof goods sold section of an income statement for 20x5.
Freight-In
$ 4,000
Merchandise Inventory, December 31, 20x4
15,000
Merchandise Inventory, December 31, 20x5
16,000
Purchases
38,000
Purchases Returns and Allowances
1,800
ANS:
Merchandise Inventory, December 31, 20x4
$
Purchases
$
Less Purchases Returns and Allowances
Net purchases
$
Freight-in
Net cost of purchases
Cost of goods available for sale
$
Less Merchandise Inventory, December 31, 20x5
Cost of Goods Sold
$
Given the following information, prepare in good form the costof goods sold section of an income statement for 20x5.
Freight-In | $ 4,000 |
Merchandise Inventory, December 31, 20x4 | 15,000 |
Merchandise Inventory, December 31, 20x5 | 16,000 |
Purchases | 38,000 |
Purchases Returns and Allowances | 1,800 |
ANS:
Merchandise Inventory, December 31, 20x4 | $ | ||
Purchases | $ | ||
Less Purchases Returns and Allowances |
| ||
Net purchases | $ | ||
Freight-in |
| ||
Net cost of purchases |
| ||
Cost of goods available for sale | $ | ||
Less Merchandise Inventory, December 31, 20x5 |
| ||
Cost of Goods Sold | $ |
Related questions
Question 10 (15 points)
The following is a partial Adjusted Trial Balance for Alpha Company for the month:
| Alpha Company | ||
| Adjusted Trial Balance (partial) | ||
| January 31, 2016 | ||
| Accounts | Debit | Credit |
| Inventory | $2,750 | |
| Sales | $11,500 | |
| Sales Discounts | 200 | |
| Sales Returns & Allowances | 1,200 | |
| Purchases | 4,000 | |
| Purchases Discounts | 150 | |
| Purchase Returns & Allowances | 450 | |
| Freight In | 50 | |
| Advertising Expense | 150 | |
| Depreciation Expense | 130 | |
| Freight Out | 70 | |
| Income Tax Expense | 500 | |
| Salaries Expense | 550 | |
| Utilities Expense | 100 | |
Additionally, Inventory for December 31, 2015 was $2,600. Prepare a multiple-step income statement.
What amount should Alpha Company report on a Multi-Step Income Statement for the following items:
1. Net Sales
2. Cost of Goods Available for Sales
3. Gross Profit
4. General & Administrative Expenses
5. Income before Taxes
| Exercise#2 | ||||||
| 10 points | ||||||
| The adjusted trial balance accounts: | ||||||
| AdvertisingExpense $ 15,000 | ||||||
| Cost of Goods Sold | 347,000 | |||||
| Depreciation Expense | 3,500 | |||||
| Freight-out | 2,000 | |||||
| Income Tax Expense | 21,700 | |||||
| Interest Expense | 19,000 | |||||
| Interest Revenue | 25,000 | |||||
| Merchandise Inventory | 35,750 | |||||
| Prepaid Rent | 4,500 | |||||
| Sales | 575,000 | |||||
| Sales Discounts | 9,500 | |||||
| Sales Returns and Allowances | 50,000 | |||||
| Store Salaries Expense | 74,000 | |||||
| Unearned Revenue | 8,000 | |||||
| Utilities Expense | 18,000 | |||||
| Prepare a multiple-step income statement,in proper form, for the year ended December 31, 2014 forCosey Inc. | ||||||
| ||||||
