1. Determine the missing amounts.
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Sales Revenue
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Cost of Goods Sold
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Gross Profit
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Operating Expenses
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Net Income
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(a)
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$75,000
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$30,000
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$10,800
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(b)
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$108,000
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$70,000
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$29,500
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(c)
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$83,900
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$79,600
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$39,500
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2. On February 1, Boyd Office Store had an inventory of 30 calculators at a cost of $18 each. The company uses a perpetual inventory system. During February, the following transactions occurred. Journalize the February transactions.
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Feb 6
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Purchased with cash 80 calculators at $20 each from Gunther Co.
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9
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Paid freight of $80 on calculators purchased from Gunther Co.
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10
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Returned 3 calculators to Gunther Co. for $63 credit (including freight) because they did not meet specifications.
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12
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Sold 26 calculators costing $21 (including freight) for $31 each to Lee Book Store, terms n/30.
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14
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Granted credit of $31 to Lee Book Store for the return of one calculator that was not ordered.
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20
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Sold 30 calculators costing $21 for $32 each to Orr's Card Shop, terms n/30.
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3. Presented below are transactions related to Bologna Company. Prepare the journal entries to record these transactions on the books of Bologna Company using a perpetual inventory system.
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1.
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On December 3, Bologna Company sold $570,000 of merchandise to Maris Co., terms 2/10, n/30, FOB shipping point. The cost of the merchandise sold was $350,000.
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2.
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On December 8, Maris Co. was granted an allowance of $20,000 for merchandise purchased on December 3.
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3.
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On December 13, Bologna Company received the balance due from Maris Co.
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4. In its income statement for the year ended December 31, 2014, Lamar Company reported the following condensed data. Prepare a multiple-step income statement.
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Operating expenses
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$ 725,000
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Loss on disposal of plant assets
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17,000
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Cost of goods sold
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1,289,000
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Net sales
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2,200,000
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Interest expense
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70,000
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5. On June 10, Thomas Company purchased $8,000 of merchandise from Emma Company, FOB shipping point, terms 2/10, n/30. Thomas pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returned to Emma for credit on June 12. The fair value of these goods is $70. On June 19, Thomas pays Emma Company in full, less the purchase discount. Both companies use a perpetual inventory system.
(a) Prepare separate entries for each transaction on the books of Thomas Company.
(b) Prepare separate entries for each transaction for Emma Company. The merchandise purchased by Thomas on June 10 had cost Emma $4,800.
6. The adjusted trial balance of Tsunami Company shows the following data pertaining to sales at the end of its fiscal year October 31, 2014: Sales Revenue $820,000, Freight-Out $16,000, Sales Returns and Allowances $25,000, and Sales Discounts $13,000. Prepare the sales revenues section of the income statement.