1. Salome is in business as a sole trader, selling wedding dresses and accessories. In the month of July 20X7 she makes sales totalling £9470. Her opening inventory was £19 570, and purchases during the month were £6251. Her closing inventory at the end of July 20X7 was £650 higher than it had been at the beginning of the month. Salome's gross profit for July 20X7 is: a) £2569 b) £3869 c) £3219 d) £1919

1. Salome is in business as a sole trader, selling wedding dresses and accessories. In the month of July 20X7 she makes sales totalling £9470. Her opening inventory was £19 570, and purchases during the month were £6251. Her closing inventory at the end of July 20X7 was £650 higher than it had been at the beginning of the month. Salome's gross profit for July 20X7 is: a) £2569 b) £3869 c) £3219 d) £1919

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter5: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 5.10APR: Periodic inventory accounts, multiple-step income statement, closing entries On December 31, 2016,...

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Periodic inventory accounts, multiple-step income statement, closing entries On December 31, 2016, the balances of the accounts appearing in the ledger of Wyman Company are as follows: Cash 5,13,500 Accounts Receivable 72,000 Merchandise Inventory, January 1,2016 257,000 Office Supplies 3,000 Prepaid Insurance 4,500 Land 150,000 Store Equipment 270,000 Accumulated DepreciationStore Equipment 55,900 Office Equipment 78,500 Accumulated DepreciationOffice Equipment 16,000 Accounts Payable 27,800 Salaries Payable 3,000 Unearned Rent 8,300 Notes Payable 50,000 Common Stock 150,000 Retained Earnings 430,500 Dividends 25,000 Sales 3,280,000 Purchases 2,650,000 Purchases Returns and Allowances 93,000 Purchases Discounts 37,000 Freight In 48,000 Sales Salaries Expense 300,000 Advertising Expense 45,000 Delivery Expense 9,000 Depreciation ExpenseStore Equipment 6,000 Miscellaneous Selling Expense 12,000 Office Salaries Expense 175,000 Rent Expense 28,000 Insurance Expense 3,000 Office Supplies Expense 2,000 Depreciation ExpenseOffice Equipment 1,500 Miscellaneous Administrative Expense 3,500 Rent Revenue 7,000 Interest Expense 2,000 Instructions 1. Does Wyman Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 2016. The merchandise inventory as of December 31, 2016, was 305,000. 3. Prepare the closing entries for Wyman Company as of December 31, 2016. 4. What would lie the net income if the perpetual inventory system had been used?
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Question 1 Xin Xin Sdn Bhd is a manufacturing company. It holds stocks of various materials in its store room and keeps proper stock records. The followings are the stock movements for Material in the month of November, 2016: Price per unit Units RM 1. Stock at 1 November 100 2.00 2. Purchases during November 3 November 200 2.10 10 November 300 2.20 24 November 300 2.30 3. Issues during November: 5 November 150 12 November 350 26 November 200 Required: (a) Prepare the store ledger card using: FIFO LIFO (iii) Average Cost Method…
Q#4 Karim Trading Company show the following transaction show the purchases and sales of merchandise during the year January 01, Inventory | 1,000 Units @ Rs. 10. January 10, Purchase on account | 5,000 Units @ Rs. 110 January 15, Sales on Account | 4,000 Units @ Rs. 312 January 18, Purchase on Cash | 3,000 Units @ Rs. 120 January 20, Sales on Account | 4,000 Units @ Rs. 322 January 25, Purchase on Cash | 6,000 Units @ Rs. 130 January 30, Sales on Cash | 5,000 Units @ Rs. 320 Required: Compute the cost of ending inventory under the perpetual system on Jan 31, 2011 using the Last In First Out (LIFO).
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