orp. owin Cost of purchases based on suppliers' invoic Trade discounts on purchases already deduc suppliers' invoices.. Importation duties.. Freight and insurance on purchases.. Other handling costs related to the importati Salaries of accounting department personne Brokerage commission paid to agents for pro
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- Bay Book and Software has two sales departments: Book and Software. After recording and posting all adjustments, including the adjustments for merchandise inventory, the accountant prepared the adjusted trial balance (shown on the next page) at the end of the fiscal year. Merchandise inventories at the beginning of the year were as follows: Book Department, 53,410; Software Department, 23,839. The bases (and sources of figures) for apportioning expenses to the two departments are as follows (rounded to the nearest dollar): Sales Salary Expense (payroll register): Book Department, 45,559; Software Department, 35,629 Advertising Expense (newspaper column inches): Book Department, 550 inches; Software Department, 450 inches Depreciation Expense, Store Equipment (property and equipment ledger): Book Department, 7,851; Software Department, 2,682 Store Supplies Expense (requisitions): Book Department, 205; Software Department, 199 Miscellaneous Selling Expense (volume of gross sales): Book Department, 240; Software Department, 110 Rent Expense and Utilities Expense (floor space): Book Department, 9,000 square feet; Software Department, 7,000 square feet Bad Debts Expense (volume of gross sales): Book Department, 1,029; Software Department, 441 Miscellaneous General Expense (volume of gross sales): Book Department, 364; Software Department, 156 Required Prepare an income statement by department to show income from operations, as well as a nondepartmentalized income statement (using the Total columns) to show net income for the entire company.In its first year of operations, Dulany Company, a clothing store, purchased $18,000 of merchandisefrom a supplier on account, terms 2/10, n 30. Dulany Company returned $3,000 of defectivemerchandise, and then paid the amount due within the discount period. During the year, the companysold merchandise inventory costing $12,000 to its customers. What would be the balance in Dulany’sCompany’s Merchandise Inventory account at the end of the year?A. $2,700B. $3,200C. $3,300D. $2,640BXY Co. has a branch, and all goods are sent thereto at cost plus 25%. The accounting is done at head office.In the first year, the branch received goods from head office costing K8,000. During the year the branch sent back to head office goods at internal invoice price of K500.Some of the goods sold to customers by the branch were unsatisfactory, and the customers complained and sent the goods in question, amounting to K50, direct to head office.During the year remittances to head office were K5,000; closing cash balance at branch K1,010, and closing branch debtors K2,340. The branch deals only with goods sent from head office. There are no discounts or bad debts and no stock differences. Ignore expenses.You are required to prepare the following accounts:a) Branch Stockb) Goods sent to branchc) Branch Adjustmentd) Branch Debtorse) Branch Cash.
- Nana Adom Company Limited is a wholesale company that deals in general goods. the following information relates to the last quarter of the year 2021. Expenses: (GH¢) October November December Selling & Distribution 20,000 30,000 34,000 General & Administration 15,000 18,000 12,000 Bad debts 21,000 15,000 20,000 Rate 8,000 6,000 10,000 Interest charges 1,600 2,000 2,400 Depreciation expenses 30,000 10,000 10,000 Expenses are payable in the month of incurrence. A contingent liability of GH¢ 10,000 is expected to mature in November Estimated cash balance at the end of september will be GH¢5,000. Cash balances should not be less than GH¢10,000. Cash can be borrowed in…GHI Company established a sales agency in a different location. Upon theestablishment of the sales agency, the home office sent merchandise samples costing P10,000 and a cash working fund of P50,000 to be maintained on the imprest basis. During the month of June, the sales agency reported to the home office sales orders. These were billed at P170,000, of which half was collected. The sales agency paid expenses of P45,800 but was reimbursed by the home office. At the end of the month there was no samples left. It was estimated that the gross profit on goods shipped to fill sales agency sales orders averaged 60% of sales. What is the net income of the sales agency for the current month?Grouse Company is a furniture retailer whose average annual gross receipts for the three preceding years exceeded $26,000,000. In the current tax year, the company purchased merchandise with an invoice price of $15,000,000, less a 2% dis- count for early payment. However, the company had to borrow on a bank line of credit and paid $150,000 interest to take advantage of the discount for early payment. Freight on the merchandise purchased totaled $360,000. For September, Grouse agreed to pay the customer’s freight on goods sold. The total cost of this freight-out was $70,000. The company has three stores and operates a warehouse where it stores goods. The cost of operating the warehouse was $240,000. The $240,000 includes labor, depreciation, taxes, and insurance on the building. The cost of the purchasing operations totaled $420,000. The jurisdiction where the company operates imposes a tax on inventories on hand as of January 1. The inventory tax for this year is $24,000. The invoice…
- The following are extracted from the records of DONATELLO CO. and its branch MICHELANGELO Co. on December 31, 2008, the third year of the corporation's existence: DONATELLO CO. MICHELANGELO CO. Allowance for Overvaluation $72,500 Sales $600,000 Expenses $200,000 Shipment from Home Office $444,000 The branch acquires all of its merchandise from the Home Office. The inventories of the Branch at billed prices are: January 1, 2008-$47,717.18 December 31, 2008-$84,000 Determine the branch profit-adjusted. a)107,500 b)49,000 c)25,766 d)58,500The Income Statement columns of the August 31 (year-end) work sheet for Ralley Company are shown here. To save time and space, the expenses have been grouped together into two categories. INCOME STATEMENT ACCOUNT NAME DEBIT CREDIT Income Summary 32,000.00 31,000.00 Sales 324,000.00 Sales Returns and Allowances 13,310.00 Sales Discounts 7,700.00 Purchases 126,360.00 Purchases Returns and Allowances 1,200.00 Purchases Discounts 1,300.00 Freight In 7,500.00 Selling Expenses 61,560.00 General Expenses 50,884.00 299,314.00 357,500.00 Net Income 58,186.00 357,500.00 357,500.00 From the information given, prepare an income statement for the company. Ralley Company Income Statement For Year Ended August 31, 20-- Revenue from Sales: $fill in the blank 2 $fill in the blank 4 fill in the blank 6 fill in the blank 7 Net Sales $fill in…The Income Statement columns of the August 31 (year-end) work sheet for Ralley Company are shown here. To save time and space, the expenses have been grouped together into two categories. INCOME STATEMENT ACCOUNT NAME DEBIT CREDIT Income Summary 31,100.00 31,130.00 Sales 324,360.00 Sales Returns and Allowances 13,970.00 Sales Discounts 7,620.00 Purchases 126,210.00 Purchases Returns and Allowances 1,020.00 Purchases Discounts 1,110.00 Freight In 8,460.00 Selling Expenses 61,470.00 General Expenses 51,751.00 300,581.00 357,620.00 Net Income 57,039.00 357,620.00 357,620.00 From the information given, prepare an income statement for the company. Ralley CompanyIncome StatementFor Year Ended August 31, 20-- (See images)
- Grouse Company is a furniture retailer whose average annual gross receipts for the three preceding years exceeded $26,000,000. In the current tax year, the company purchased merchandise with an invoice price of $15,000,000, less a 2% discount for early payment. However, the company had to borrow on a bank line of credit and paid $150,000 interest to take advantage of the discount for early payment. Freight on the merchandise purchased totaled $360,000. For September, Grouse agreed to pay the customer's freight on goods sold. The total cost of this freight-out was $70,000. The company has three stores and operates a warehouse where it stores goods. The cost of operating the warehouse was $240,000. The $240,000 includes labor, depreciation, taxes, and insurance on the building. The cost of the purchasing operations totaled $420,000. The jurisdiction where the company operates imposes a tax on inventories on hand as of January 1. The inventory tax for this year is $24,000. The invoice…AM is a trading entity. Purchases are on credit, with 70% paid in the month following the date ofpurchase and 30% paid in the month after that.Sales are partly on credit and partly for cash. Customers who receive credit are given 30 days topay. On average 60% pay within30 days, 30% pay between 30 and 60 days and 5% pay between60 and 90 days. The balance is written off as irrecoverable. Other overheads, including salaries,are paid within the month incurred.AM plan to purchase new equipment at the end of June 2015, the expected cost of which isP250,000. The equipment will be purchases on 30 days credit, payable at the end of July.The cash balance on 1 May 2015 is P96,000.The actual/budgeted figures for the six month to July 2015 were: ACTUAL BUDGETED FEB P000 MARCH P000 APRIL P000 MAY P000 JUNE P000 JULY P000 Credit sales 100 100 110 110 120 120 Cash sales 30 30 35 35 40 40 Credit Purchases 45 50 50 55 55 60 other overhead expenses 40 40 40 50 50 50 Required:a.…
