(Answered) During 2013 king merchandising company purchased 30000 of

Accounting

During 2013, King Merchandising Company purchased $30,000 of inventory on account. King sold inventory on account that cost $22,500 for $31,000. Cash payments on accounts payable were $18,000. There was $22,000 cash collected from accounts receivable. King also paid $4,200 cash for operating expenses. Assume that King started the accounting period with $18,000 in both cash and common stock.

Required:

a. Identify the events described in the preceding paragraph and record them in a horizontal statements model like the following one:

186_264-B-A-M-B (1286).png

b. What is the balance of accounts receivable at the end of 2013?
c. What is the balance of accounts payable at the end of 2013?
d. What are the amounts of gross margin and net income for 2013?
e. Determine the amount of net cash flow from operating activities.
f. Explain why net income and retained earnings are the same for King. Normally would these amounts be the same? Why or why not?

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91604337
Price:- $15

Verified Expert

Priced at $30 Now at $15, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - selfish gene company is a merchandising firm the

Question - Selfish Gene Company is a merchandising firm. The following events occurred during the month of May. (Note: Selfish Gene maintains a perpetual inventory system.) May 1. Received $40,000 cash as new stockholder ...

Question - kramer corp reported the following sale and

Question - Kramer Corp. reported the following sale and purchase transactions related to a specific product in January 2017: Date Transaction Quantity Unit Cost Unit Sales Price Jan 01 Beginning inventory 5 $90 Jan 03 Sa ...

Question - culver corporation having recently issued a

Question - Culver Corporation, having recently issued a $20,075,700, 15-year bond issue, is committed to make annual sinking fund deposits of $625,000. The deposits are made on the last day of each year and yield a retur ...

Question - on december 1 2016 goetz corporation leased

Question - On December 1, 2016, Goetz Corporation leased office space for 10 years at a monthly rental of $90,000. On that date Perez paid the landlord the following amounts: Rent deposit ...

Question decision making with managerial accountingdue to

Question: Decision Making with Managerial Accounting Due to varying business characteristics, the managerial accounting techniques applied in each business may differ. For example, a business in the start-up phase may re ...

Question - a machine is purchased january 1 at a cost of

Question - A machine is purchased January 1 at a cost of $56,290. It is expected to produce 129,000 units and have a salvage value of $3,400 at the end of its useful life. Units produced are as follows: Year 1 10,400 Yea ...

Question 1 compare companys net income to its cash provided

Question: 1. Compare company's net income to its cash provided by operating activities for the most recent year-end. Which is larger? 2. Compare company's net income over the last two reporting periods. Next, compare com ...

Question - destin company signs a contract to manufacture a

Question - Destin Company signs a contract to manufacture a new 3D printer for $80,000. The contract includes installation which costs $4,000 and a maintenance agreement over the life of the printer at a cost of $10,000. ...

Question - as a senior accountant you had just prepared and

Question - As a senior Accountant you had just prepared and posted the journal entry that closed the revenue accounts to the income summary Account. You then noticed that your bookkeeper made a tragic error in recording ...

Question - dillons camping equipment was burglarized on

Question - Dillon's Camping Equipment was burglarized on 3/10/15. It is unclear how many items were stolen. Dillon and its insurance company are currently working to estimate the dollar value of the stolen goods in order ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert