What will be the Net Sales ? a.All the options are wrong b.326000c.324000d.328000e.332000 The following information relates to Suleiman & Sons LLC.Cash In Hand16,000Carriage Inwards 35000Sales Returns4,000Return Outwards 15000Office Expense18,50018,100office Equipment Maintenance 4000Marketing Expense 3500Advertising Expense 16000Sales328,000Rent ReceivedInterest Revenue 14,600Office Rent14,000Salesman Salary 3,200Office Insurance Expense 4,500Internet Charges600Dividend Income 15200Opening StockPurchases75000Commission Income 18400210000Closing Stock45,000Direct Wages15000Use the above information and answer 29, 30 and 31 MCQS

Net Sales = Sales - Sales returns

Cash In Hand 16,000 Carriage Inwards 35000 Sales Returns 4,000 Return Outwards 15000 Office Expense18,500 Sales 328,000 Rent Received 18,100office Equipment Maintenance 4000 Marketing Expense 3500 Advertising Expense 16000 Office Insurance Expense 4,500 Interest Revenue 14,600 Office Rent 14,000 Salesman Salary 3,200 Internet Charges 600 Dividend Income 15200 Opening Stock Purchases 75000 Commission Income 18400 210000 Closing Stock45,000 Direct Wages 15000 Use the above information and answer 29, 30 and 31 MCQS

Cash In Hand 16,000 Carriage Inwards 35000 Sales Returns 4,000 Return Outwards 15000 Office Expense18,500 Sales 328,000 Rent Received 18,100office Equipment Maintenance 4000 Marketing Expense 3500 Advertising Expense 16000 Office Insurance Expense 4,500 Interest Revenue 14,600 Office Rent 14,000 Salesman Salary 3,200 Internet Charges 600 Dividend Income 15200 Opening Stock Purchases 75000 Commission Income 18400 210000 Closing Stock45,000 Direct Wages 15000 Use the above information and answer 29, 30 and 31 MCQS

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter3: Basic Accounting Systems: Accrual Basis

Section: Chapter Questions

Problem 2SEQ: On January 24, 20Y8, Niche Consulting collected $5,700 it had hilled its clients for services...

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Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
To demonstrate the difference between cash account activity and accrual basis profits (net income), note the amount each transaction affects cash and the amount each transaction affects net income. A. paid balance due for accounts payable $6,900 B. charged clients for legal services provided $5,200 C. purchased supplies on account $1,750 D. collected legal service fees from clients for current month $3,700 E. issued stock in exchange for a note payable $10,000
To demonstrate the difference between cash account activity and accrual basis profits (net income), note the amount each transaction affects cash and the amount each transaction affects net income. A. issued stock for cash $20,000 B. purchased supplies inventory on account $1,800 C. paid employee salaries; assume it was current days expenses $950 D. paid note payment to bank (principal only) $1,200 E. collected balance on accounts receivable $4,750
What accounting method (cash or accrual) would you recommend for the following businesses? a. A gift shop with average annual gross receipts of 900,000. b. An accounting partnership with average annual gross receipts of 12 million. c. A drywall subcontractor who works on residences and has annual gross receipts of 3 million. d. An incorporated insurance agency with average annual gross receipts of 28 million. e. A sole proprietor operating a retail clothing store with average annual gross receipts of 12 million. f. A sole proprietor operating a widget manufacturing plant with average annual gross receipts of 27 million.
On January 24, 20Y8, Niche Consulting collected $5,700 it had hilled its clients for services rendered on December 31, 20Y7. How would you record the January 24 transaction, using the accrual basis? A. Increase Cash, $5,700; decrease Fees Earned, $5,700 B. Increase Accounts Receivable, $5,700; increase Fees Earned, $5,700 C. Increase Cash, $5,700; decrease Accounts Receivable, $5,700 D. Increase Cash, $5,700; increase Fees Earned, $5,700
Transactions Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transactions were completed by Interstate Delivery during May: 1. Received cash in exchange for common stock, 18,000. 2. Paid advertising expense, 4,850. 3. Purchased supplies on account, 2,100. 4. Billed customers for delivery services on account, 14,700. 5. Received cash from customers on account, 8,200. Indicate the effect of each transaction on the following accounting equation elements: Assets, Liabilities, Common Stock, Dividends, Revenue, and Expense. To illustrate, the answer to (1) follows: (1) Asset (Cash) increases by 18,000; Common Stock increases by 18,000.
Blum Services has the following unadjusted balances at year-end.Cash $12,900Prepaid insurance 2,000Office supplies 1,300Office equipment 10,500Accumulated depreciation–office equipment 3,500Accounts payable 2,900Salaries payable -0-Unearned service revenue 4,500A.L.Blum, capital 11,750A.L.Blum, drawing 5,600Service revenue 13,350Salary expense 3,700Depreciation expense -0-Supplies expense -0-Insurance expense -0-The following information is available to use in making adjusting entries.a. Office supplies on hand at year-end: $250b. Prepaid insurance expired during the year: $325c. Unearned revenue remaining at year-end: $2,500d. Depreciation expense for the year: $1,800e. Accrued salaries at year-end: $900From the above information prepare the adjusted trial balance for the company (NB.Worksheet must include unadjusted trial balance, adjustments, and the adjusted trialbalance.
The following information relates to Suleiman & Sons LLC. Cash In Hand 16,000 Carriage Inwards 35000 Sales Returns 4,000 Return Outwards 15000 Sales 328,000 Office Expense 18,500 Rent Received 18,100 Office Equipment Maintenance 4000 Interest Revenue 14,600 Marketing Expense 3500 Office Rent 14,000 Advertising Expense 16000 Salesman Salary 3,200 Office Insurance Expense 4,500 Internet Charges 600 Dividend Income 15200 Opening Stock 75000 Commission Income 18400 Purchases 210000 Closing Stock 45,000 Direct Wages 15000 1- What will be the Gross Profit at the end of the year ؟ 2- What will be the cost of goods sold? 3- What will be the Net Sales ?
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The following balances are related to XYX LLC . Bank Balance 16,000 Purchases 195000 Return Inwards 4,000 Direct Wages 18000 Sales 425,000 Carriage Inwards 35000 Rent Received 20,100 Return Outwards 16000 Interest Revenue 15,600 Office Expense 19,500 Office Rent 15,000 Office Equipment Maintenance 6000 Salesman Salary 4,200 Sales Promotion Expense 4500 Internet Charges 800 Advertising Expense 18000 Opening Stock 85000 Office Insurance Expense 6,500 Dividend Income 18200 Commission Income 20400 Closing Stock 55,000 1- What will be the total Selling and distribution expense? 2- What will be the Total income 3- What will be the total office expense?
I. Listed below are the income statement accounts of MBA Company as of December 31,2020.DEBIT CREDITSales P 475,000Sales Return & Allowances P 5,000Purchases 220,000Purchase Return & Allowances 3,000Advertising 10,000Sales Salaries 30,000Commission Expense 15,000Miscellaneous Selling Expense 3,000Rent Expense 15,000Office Salaries 20,000Light & Water 2,000Insurance Expense 1,000Taxes & Licenses 5,000Merchandise Inventory- Jan. 1,2019 57,000Merchandise Inventory-Dec. 31,2019 10,000Required:Compute the following;1. Net Sales_________________________2. Net Purchases_____________________3. Cost of Goods Sold_________________4. Reporting Period__________________5. Net Profit________________________
David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed the following account balances as of December 31, 2020: Cash Equipment Accum.Deprec.Equipment AccountsPayable NotesPayable DavidWallace,Capital OlenaDunn,Capital DannyLin,Capital Account balances December 31, 2020 $ 40,300 $ 191,000 $ 102,000 $ 8,300 $ 25,000 $ 44,000 $ 27,000 $ 25,000 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $69,000 on January 1, 2021. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively. The Schedule is complete, however, I'm struggling with the journal entries. I attached images of the completed schedule to assist with the journal entries. 2. Prepare the liquidation entries (sale of equipment, allocation of gain/loss, payment of creditors, final distribution of cash). 1 Record the sale…