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On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as follows: $ 13,500 Cash Purchases $2,650,000 Accounts Receivable Purchases Returns and Allowances 72,000 93,000 Merchandise Inventory, Purchases Discounts 37,000 Freight In Sales Salaries Expense Advertising Expense Delivery Expense January 1, 2019 Estimated Returns Inventory 257,000 48,000 35,000 300,000 Office Supplies 3,000 45,000 Prepaid Insurance 4,500 9,000 Land 150,000 Depreciation Expense- Store Equipment Accumulated Depreciation- Store Equipment Miscellaneous Selling Expense Office Salaries Expense 270,000 6,000 12,000 55,900 Store Equipment 175,000 Office Equipment Accumulated Depreciation- Office Equipment Accounts Payable Customer Refunds Payable Salaries Payable 78,500 Rent Expense 28,000 Insurance Expense 3,000 Office Supplies Expense 16,000 2,000 27,800 Depreciation Expense- Office Equipment Miscellaneous Administrative Expense 50,000 1,500 3,000 3,500 Unearned Rent 8,300 Rent Revenue 7,000 Notes Payable Shirley Wyman, Capital Shirley Wyman, Drawing Interest Expense 50,000 2,000 515,600 25,000 Sales 3,280,000 Instructions - Does Wyman Company use a periodic or perpetual inventory system? Explain. 1. 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 2019. The merchandise inventory as of December 31, 2019, was $305,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was $30,000. 3. Prepare the closing entries for Wyman Company as of December 31, 2019. 4. What would the net income have been if the perpetual inventory system had been used?

On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as follows: $ 13,500 Cash Purchases $2,650,000 Accounts Receivable Purchases Returns and Allowances 72,000 93,000 Merchandise Inventory, Purchases Discounts 37,000 Freight In Sales Salaries Expense Advertising Expense Delivery Expense January 1, 2019 Estimated Returns Inventory 257,000 48,000 35,000 300,000 Office Supplies 3,000 45,000 Prepaid Insurance 4,500 9,000 Land 150,000 Depreciation Expense- Store Equipment Accumulated Depreciation- Store Equipment Miscellaneous Selling Expense Office Salaries Expense 270,000 6,000 12,000 55,900 Store Equipment 175,000 Office Equipment Accumulated Depreciation- Office Equipment Accounts Payable Customer Refunds Payable Salaries Payable 78,500 Rent Expense 28,000 Insurance Expense 3,000 Office Supplies Expense 16,000 2,000 27,800 Depreciation Expense- Office Equipment Miscellaneous Administrative Expense 50,000 1,500 3,000 3,500 Unearned Rent 8,300 Rent Revenue 7,000 Notes Payable Shirley Wyman, Capital Shirley Wyman, Drawing Interest Expense 50,000 2,000 515,600 25,000 Sales 3,280,000 Instructions - Does Wyman Company use a periodic or perpetual inventory system? Explain. 1. 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 2019. The merchandise inventory as of December 31, 2019, was $305,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was $30,000. 3. Prepare the closing entries for Wyman Company as of December 31, 2019. 4. What would the net income have been if the perpetual inventory system had been used?

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 9PA: On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as...
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On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as follows: $ 13,500 Cash Purchases $2,650,000 Accounts Receivable Purchases Returns and Allowances 72,000 93,000 Merchandise Inventory, Purchases Discounts 37,000 Freight In Sales Salaries Expense Advertising Expense Delivery Expense January 1, 2019 Estimated Returns Inventory 257,000 48,000 35,000 300,000 Office Supplies 3,000 45,000 Prepaid Insurance 4,500 9,000 Land 150,000 Depreciation Expense- Store Equipment Accumulated Depreciation- Store Equipment Miscellaneous Selling Expense Office Salaries Expense 270,000 6,000 12,000 55,900 Store Equipment 175,000 Office Equipment Accumulated Depreciation- Office Equipment Accounts Payable Customer Refunds Payable Salaries Payable 78,500 Rent Expense 28,000 Insurance Expense 3,000 Office Supplies Expense 16,000 2,000 27,800 Depreciation Expense- Office Equipment Miscellaneous Administrative Expense 50,000 1,500 3,000 3,500 Unearned Rent 8,300 Rent Revenue 7,000 Notes Payable Shirley Wyman, Capital Shirley Wyman, Drawing Interest Expense 50,000 2,000 515,600 25,000 Sales 3,280,000 Instructions - Does Wyman Company use a periodic or perpetual inventory system? Explain. 1. 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 2019. The merchandise inventory as of December 31, 2019, was $305,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was $30,000. 3. Prepare the closing entries for Wyman Company as of December 31, 2019. 4. What would the net income have been if the perpetual inventory system had been used?
Transcribed Image Text:On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as follows: $ 13,500 Cash Purchases $2,650,000 Accounts Receivable Purchases Returns and Allowances 72,000 93,000 Merchandise Inventory, Purchases Discounts 37,000 Freight In Sales Salaries Expense Advertising Expense Delivery Expense January 1, 2019 Estimated Returns Inventory 257,000 48,000 35,000 300,000 Office Supplies 3,000 45,000 Prepaid Insurance 4,500 9,000 Land 150,000 Depreciation Expense- Store Equipment Accumulated Depreciation- Store Equipment Miscellaneous Selling Expense Office Salaries Expense 270,000 6,000 12,000 55,900 Store Equipment 175,000 Office Equipment Accumulated Depreciation- Office Equipment Accounts Payable Customer Refunds Payable Salaries Payable 78,500 Rent Expense 28,000 Insurance Expense 3,000 Office Supplies Expense 16,000 2,000 27,800 Depreciation Expense- Office Equipment Miscellaneous Administrative Expense 50,000 1,500 3,000 3,500 Unearned Rent 8,300 Rent Revenue 7,000 Notes Payable Shirley Wyman, Capital Shirley Wyman, Drawing Interest Expense 50,000 2,000 515,600 25,000 Sales 3,280,000 Instructions - Does Wyman Company use a periodic or perpetual inventory system? Explain. 1. 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 2019. The merchandise inventory as of December 31, 2019, was $305,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was $30,000. 3. Prepare the closing entries for Wyman Company as of December 31, 2019. 4. What would the net income have been if the perpetual inventory system had been used?
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