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### Problem 5-4A Computing merchandising amounts and formatting income s.pdf

1. Problem 5-4A Computing merchandising amounts and formatting income statements LO C2, P4 [The following information applies to the questions displayed below.] On August 31, 2012, merchandise inventory was \$28,245. Supplementary records of merchandising activities for the year ended August 31, 2013, reveal the following itemized costs. References Section BreakProblem 5-4A Computing merchandising amounts and formatting income statements LO C2, P4 2. value: 0.80 points Required information Problem 5-4A Part 1 References eBook & Resources WorksheetDifficulty: MediumLearning Objective: 05-P4 Define and prepare multiple-step and single-step income statements. Problem 5-4A Part 1Learning Objective: 05-C2 Identify and explain the inventory asset and cost flows of a merchandising company. Check my work 3. value: 0.80 points Required information Problem 5-4A Part 2 References eBook & Resources WorksheetDifficulty: MediumLearning Objective: 05-P4 Define and prepare multiple-step and single-step income statements. Problem 5-4A Part 2Learning Objective: 05-C2 Identify and explain the inventory asset and cost flows of a merchandising company. Check my work
2. 4. value: 0.80 points Required information Problem 5-4A Part 3 Prepare a multiple-step income statement that includes separate categories for selling expenses and for general and administrative expenses. rev: 01_02_2014_QC_43145 References eBook & Resources WorksheetDifficulty: MediumLearning Objective: 05-P4 Define and prepare multiple-step and single-step income statements. Problem 5-4A Part 3Learning Objective: 05-C2 Identify and explain the inventory asset and cost flows of a merchandising company. Check my work 5. value: 0.80 points Required information Problem 5-4A Part 4 Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses. Valley Company’s adjusted trial balance on August 31, 2013, its fiscal year-end, follows. Solution 1)Net sales : sales Revenue 239,400 less:sales discount (2663) sales return and allowance (15800) net sales 219,937 2)cost of merchandise purchased = Invoice cost of merchandise + freight in -disocunt - allowances = 102900+3900-2161-4939 = \$ 99,700
3. 3) 4)Sales239,400less:Discount(2663)allowances and returns(15800)net sales revenue219,937less:Cost of goods sold(92,945 )gross margin126,992less:Operatin expenseselling :Sales salaries 32,798Rent selling 11,252 Advertising 20,349(64,399)General andStore supplies 2,873Office salary 29,925 Rent 2873office supplies 958(36,629)Total operating expenseNet Income25,964
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