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Capital Technologies Inc. began 2020 with inventory of $20,000. During the year, Capital purchased inventory costing $100,000 and sold goods for $140,000, with all transactions on account. Capital ended the year with inventory of $30,000. Use the data in exercise to do the following for Capital Technologies Inc.: 1. Post to the Inventory and Cost of Goods Sold accounts. 2. Compute cost of goods sold by the​ cost-of-goods-sold model. 3. Prepare the December 2020 income statement of Capital Technologies Inc. through gross profit.

Capital Technologies Inc. began 2020 with inventory of $20,000. During the year, Capital purchased inventory costing $100,000 and sold goods for $140,000, with all transactions on account. Capital ended the year with inventory of $30,000. Use the data in exercise to do the following for Capital Technologies Inc.: 1. Post to the Inventory and Cost of Goods Sold accounts. 2. Compute cost of goods sold by the​ cost-of-goods-sold model. 3. Prepare the December 2020 income statement of Capital Technologies Inc. through gross profit.

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business
Section: Chapter Questions
Problem 5TF: LO4 Accounts receivable turnover is the number of times merchandise inventory turned over or was...
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Question: Capital Technologies Inc. began 2020 with inventory of $20,000. During the year, Capital purchased inventory costing $100,000 and sold goods for $140,000, with all transactions on account. Capital ended the year with inventory of $30,000. Use the data in exercise to do the following for Capital Technologies Inc.:

1. Post to the Inventory and Cost of Goods Sold accounts.

2. Compute cost of goods sold by the​ cost-of-goods-sold model.

3. Prepare the December 2020 income statement of Capital Technologies Inc. through gross profit. (Please explain how to get the amount for Sales Revenue, I did not understand)

Purchases... 100,000 Accounts Payable... 100,000 Accounts Receivable.. 140,000 Sales Revenue.... 140,000 End-of-period entries: Cost of Goods Sold.. 20,000 Inventory (beginning balance).. Inventory (ending balance)... Cost of Goods Sold..... 20,000 30,000 30,000 Cost of Goods Sold.. 100,000 Purchases... 100,000
Transcribed Image Text:Purchases... 100,000 Accounts Payable... 100,000 Accounts Receivable.. 140,000 Sales Revenue.... 140,000 End-of-period entries: Cost of Goods Sold.. 20,000 Inventory (beginning balance).. Inventory (ending balance)... Cost of Goods Sold..... 20,000 30,000 30,000 Cost of Goods Sold.. 100,000 Purchases... 100,000
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