On January 1, 2025, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing $90,328 cash. The new company, Marigold Sales and Service, has the following transactions during January. 1. 2. 3. 4. 5. (a) - Pays $12,000 in advance for 3 months' rent of office, showroom, and repair space. Purchases 44 personal computers at a cost of $1,612 each, 10 graphics computers at a cost of $2,612 each, and 29 printers at a cost of $412 each, paying cash upon delivery. Sales, repair, and office employees earn $12,928 in salaries and wages during January, of which $3,328 was still payable at the end of January. Sells 34 personal computers at $2,662 each, 8 graphics computers for $3,712 each, and 19 printers for $612 each; $75,328 is received in cash in January, and $56,504 is sold on a deferred payment basis. Other operating expenses of $8,728 are incurred and paid for during January; $2,328 of incurred expenses are payable at January 31. Your answer is partially correct. (1) a cash-hasis income statement and (2) an accrual-basis income statement for the

On January 1, 2025, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing $90,328 cash. The new company, Marigold Sales and Service, has the following transactions during January. 1. 2. 3. 4. 5. (a) - Pays $12,000 in advance for 3 months' rent of office, showroom, and repair space. Purchases 44 personal computers at a cost of $1,612 each, 10 graphics computers at a cost of $2,612 each, and 29 printers at a cost of $412 each, paying cash upon delivery. Sales, repair, and office employees earn $12,928 in salaries and wages during January, of which $3,328 was still payable at the end of January. Sells 34 personal computers at $2,662 each, 8 graphics computers for $3,712 each, and 19 printers for $612 each; $75,328 is received in cash in January, and $56,504 is sold on a deferred payment basis. Other operating expenses of $8,728 are incurred and paid for during January; $2,328 of incurred expenses are payable at January 31. Your answer is partially correct. (1) a cash-hasis income statement and (2) an accrual-basis income statement for the

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 80EDC

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