Exercise 5 9 part level submission

Brief Exercise 5-1

Presented here are the components in Casilla Company’s income statement.

Determine the missing amounts.

Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Net Income

Brief Exercise 5-8

Assume that Tracy Company uses a periodic inventory system and has these account balances: Purchases $404,000; Purchase Returns and

Allowances $13,000; Purchase Discounts $9,000; and Freight-in $16,000.

Determine net purchases and cost of goods purchased.

Net purchases $

Cost of goods purchased $

Brief Exercise 5-9

Assume that Tracy Company uses a periodic inventory system and has these account balances: Purchases $404,000; Purchase Returns and

Allowances $13,000; Purchase Discounts $9,000; and Freight-in $16,000. Tracy Company has beginning inventory of $60,000, ending

inventory of $90,000, and net sales of $612,000.

Determine the amounts to be reported for cost of goods sold and gross profit.

Cost of goods sold $

Gross profit $

Brief Exercise 5-10

Durbin Corporation reported net sales of $250,000, cost of goods sold of $150,000, operating expenses of $50,000, net income of $32,500,

beginning total assets of $520,000, and ending total assets of $600,000.

Calculate profit margin and gross profit rate. (Round answers to 0 decimal places, e.g. 10%.)

Profit margin %

Gross profit rate %

Exercise 5-6 (Part Level Submission)

Presented below is information for Zhou Co. for the month of January 2014.

Cost of goods sold $212,000 Rent expense $32,000

Freight-out 7,000 Sales discounts 8,000

Insurance expense 12,000 Sales returns and allowances 20,000

Salaries and wages expense 60,000 Sales revenue 370,000

(a)

Prepare an income statement using the multi-step format. Assume a 25% tax rate.

(b)

Calculate the profit margin and the gross profit rate. (Round answers to 1 decimal place, e.g. 15.2%.)

Problem 5-2A

McCoy Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. During the

month of June, the following merchandising transactions occurred.

June 1 Purchased books on account for $1,040 (including freight) from Carlin Publishers, terms 2/10, n/30.

3 Sold books on account to the Goldschmidt bookstore for $1,200. The cost of the merchandise sold was $720.

6 Received $40 credit for books returned to Carlin Publishers.

9 Paid Carlin Publishers in full.

15 Received payment in full from the Goldschmidt bookstore.

17 Sold books on account to Town Crier for $1,200. The cost of the merchandise sold was $730.

20 Purchased books on account for $720 from Good Book Publishers, terms 1/15, n/30.

24 Received payment in full from Town Crier.

26 Paid Good Book Publishers in full.

28 Sold books on account to Emporia Bookstore for $1,300. The cost of the merchandise sold was $780.

30 Granted Emporia Bookstore $130 credit for books returned costing $80.

Journalize the transactions for the month of June for McCoy Warehouse, using a perpetual inventory system. (Credit account titles are

automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the

problem. Round answers to 0 decimal places e.g. 15,222.)

Problem 5-9A (Part Level Submission)

At the beginning of the current season on April 1, the ledger of Flint Hills Pro Shop showed Cash $ 2,500 ; Inventory $ 3,500 ; and Common

Stock $ 6,000 . The following transactions occurred during April 2014.

Apr. 5 Purchased golf bags, clubs, and balls on account from Akers Co. $ 1,500 , terms 3 /10, n/60.

7 Paid freight on Akers Co. purchases $ 80 .

9 Received credit from Akers Co. for merchandise returned $ 200 .

10 Sold merchandise on account to members $ 1,340 , terms n/30.

12 Purchased golf shoes, sweaters, and other accessories on account from Palmer Sportswear $ 830 , terms 1 /10, n/30.

14 Paid Akers Co. in full.

17 Received credit from Palmer Sportswear for merchandise returned $ 30 .

20 Made sales on account to members $ 810 , terms n/30.

21 Paid Palmer Sportswear in full.

27 Granted credit to members for clothing that did not fit properly $ 80 .

30 Received payments on account from members $ 1,220 .

(a)

Journalize the April transactions using a periodic inventory system. (Credit account titles are automatically indented when amount is

entered. Do not indent manually. Record journal entries in the order presented in the problem.)

(b)

Using T accounts, enter the beginning balances in the ledger accounts and post the April transactions. (Post entries in the order of journal

entries posted in part a.)

(c)

Prepare a trial balance on April 30, 2014.

(d)

Prepare an income statement through gross profit, assuming inventory on hand at April 30 is $4,263.