Homework Help is Here – Start Your Trial Now!
Business
Accounting
On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as follows: $ 125,000 Purchases Cash $4,100,000 Accounts Recelvable Purchases Returns and Allowances 340,000 32,000 Merchandise Inventory, July 1, 2018 Estimated Returns Inventory Office Supplies Prepaid Insurance Purchases Discounts 13,000 45,000 415,000 Freight In Sales Salaries Expense Advertising Expense Delivery Expense Depreciation Expense- Store Equipment Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Office Supplies Expense Depreciation Expense- Office Equipment Miscellaneous Administrative Expense 25,000 9,000 580,000 18,000 315,000 Land 300,000 18,000 Store Equipment Accumulated Depreciation- 550,000 12,000 Store Equipment Office Equipment Accumulated Depreciation- Office Equipment Accounts Payable 190,000 28,000 250,000 375,000 43,000 110,000 17,000 5,000 85,000 Customer Refunds Payable Salaries Payable 20,000 4,000 16,000 9,000 Unearned Rent 6,000 Notes Payable Amy Gant, Capital Amy Gant, Drawing 50,000 Rent Revenue 32,500 2,500 820,000 Interest Expense 275,000 Sales 6,590,000 Instructions - Does Simkins Company use a periodic or perpetual inventory system? Explain. 1. 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 2019. The merchandise inventory as of June 30, 2019, was $508,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was $33,000. 3. Prepare the closing entries for Simkins Company as of June 30, 2019. 4. What would the net income have been if the perpetual inventory system had been used?

On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as follows: $ 125,000 Purchases Cash $4,100,000 Accounts Recelvable Purchases Returns and Allowances 340,000 32,000 Merchandise Inventory, July 1, 2018 Estimated Returns Inventory Office Supplies Prepaid Insurance Purchases Discounts 13,000 45,000 415,000 Freight In Sales Salaries Expense Advertising Expense Delivery Expense Depreciation Expense- Store Equipment Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Office Supplies Expense Depreciation Expense- Office Equipment Miscellaneous Administrative Expense 25,000 9,000 580,000 18,000 315,000 Land 300,000 18,000 Store Equipment Accumulated Depreciation- 550,000 12,000 Store Equipment Office Equipment Accumulated Depreciation- Office Equipment Accounts Payable 190,000 28,000 250,000 375,000 43,000 110,000 17,000 5,000 85,000 Customer Refunds Payable Salaries Payable 20,000 4,000 16,000 9,000 Unearned Rent 6,000 Notes Payable Amy Gant, Capital Amy Gant, Drawing 50,000 Rent Revenue 32,500 2,500 820,000 Interest Expense 275,000 Sales 6,590,000 Instructions - Does Simkins Company use a periodic or perpetual inventory system? Explain. 1. 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 2019. The merchandise inventory as of June 30, 2019, was $508,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was $33,000. 3. Prepare the closing entries for Simkins Company as of June 30, 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 9PB: On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as...
See similar textbooks
icon
Related questions
Question
On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as follows: $ 125,000 Purchases Cash $4,100,000 Accounts Recelvable Purchases Returns and Allowances 340,000 32,000 Merchandise Inventory, July 1, 2018 Estimated Returns Inventory Office Supplies Prepaid Insurance Purchases Discounts 13,000 45,000 415,000 Freight In Sales Salaries Expense Advertising Expense Delivery Expense Depreciation Expense- Store Equipment Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Office Supplies Expense Depreciation Expense- Office Equipment Miscellaneous Administrative Expense 25,000 9,000 580,000 18,000 315,000 Land 300,000 18,000 Store Equipment Accumulated Depreciation- 550,000 12,000 Store Equipment Office Equipment Accumulated Depreciation- Office Equipment Accounts Payable 190,000 28,000 250,000 375,000 43,000 110,000 17,000 5,000 85,000 Customer Refunds Payable Salaries Payable 20,000 4,000 16,000 9,000 Unearned Rent 6,000 Notes Payable Amy Gant, Capital Amy Gant, Drawing 50,000 Rent Revenue 32,500 2,500 820,000 Interest Expense 275,000 Sales 6,590,000 Instructions - Does Simkins Company use a periodic or perpetual inventory system? Explain. 1. 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 2019. The merchandise inventory as of June 30, 2019, was $508,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was $33,000. 3. Prepare the closing entries for Simkins Company as of June 30, 2019. 4. What would the net income have been if the perpetual inventory system had been used?
Transcribed Image Text:On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as follows: $ 125,000 Purchases Cash $4,100,000 Accounts Recelvable Purchases Returns and Allowances 340,000 32,000 Merchandise Inventory, July 1, 2018 Estimated Returns Inventory Office Supplies Prepaid Insurance Purchases Discounts 13,000 45,000 415,000 Freight In Sales Salaries Expense Advertising Expense Delivery Expense Depreciation Expense- Store Equipment Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Office Supplies Expense Depreciation Expense- Office Equipment Miscellaneous Administrative Expense 25,000 9,000 580,000 18,000 315,000 Land 300,000 18,000 Store Equipment Accumulated Depreciation- 550,000 12,000 Store Equipment Office Equipment Accumulated Depreciation- Office Equipment Accounts Payable 190,000 28,000 250,000 375,000 43,000 110,000 17,000 5,000 85,000 Customer Refunds Payable Salaries Payable 20,000 4,000 16,000 9,000 Unearned Rent 6,000 Notes Payable Amy Gant, Capital Amy Gant, Drawing 50,000 Rent Revenue 32,500 2,500 820,000 Interest Expense 275,000 Sales 6,590,000 Instructions - Does Simkins Company use a periodic or perpetual inventory system? Explain. 1. 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 2019. The merchandise inventory as of June 30, 2019, was $508,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was $33,000. 3. Prepare the closing entries for Simkins Company as of June 30, 2019. 4. What would the net income have been if the perpetual inventory system had been used?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 7 steps with 5 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
SEE MORE TEXTBOOKS