Use the following financial information to find the entry you would make on an income statement for INCOME BEFORE TAXES for the year ended December 31, 2011: Gross Sales, $222,000; Sales Returns and Allowances, $11,200; Sales Discounts, $1,800; Merchandise Inventory, January 1, 2011, $67,600; Merchandise Inventory, December 31, 2011, $79,000; Net Purchases, $84,000; Freight In, $950; Salaries, $107,800; Rent, $19,700; Utilities, $1,450; Insurance, $2,150; and Income Tax, $14,900. O ($10,550) O $4,350 O $131,100 O $135,450
Use the following financial information to find the entry you would make on an income statement for INCOME BEFORE TAXES for the year ended December 31, 2011: Gross Sales, $222,000; Sales Returns and Allowances, $11,200; Sales Discounts, $1,800; Merchandise Inventory, January 1, 2011, $67,600; Merchandise Inventory, December 31, 2011, $79,000; Net Purchases, $84,000; Freight In, $950; Salaries, $107,800; Rent, $19,700; Utilities, $1,450; Insurance, $2,150; and Income Tax, $14,900. O ($10,550) O $4,350 O $131,100 O $135,450
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter14: Adjustments For A Merchandising Business
Section: Chapter Questions
Problem 2MC: Under the periodic inventory system, what account is debited when an estimate is made for sales made...
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Transcribed Image Text:Use the following financial information to find the entry you would make on an income statement for INCOME BEFORE TAXES for the year ended December 31, 2011:
Gross Sales, $222,000; Sales Returns and Allowances, $11,200; Sales Discounts, $1,800; Merchandise Inventory, January 1, 2011, $67,600; Merchandise Inventory, December 31, 2011, $79,000; Net Purchases, $84,000; Freight In, $950; Salaries,
$107,800; Rent, $19,700; Utilities, $1,450; Insurance, $2,150; and Income Tax, $14,900.
O ($10,550)
O $4,350
O $131,100
O $135,450
Transcribed Image Text:Use the following financial information to find the entry you would make on an income statement for COST OF GOODS SOLD for the year ended December 31, 2011:
Gross Sales, $241,000; Sales Returns and Allowances, $5,600; Sales Discounts, $1,000; Merchandise Inventory, January 1, 2011, $62,500; Merchandise Inventory, December 31, 2011, $70,200; net purchases, $95,600; Freight In, $525; Salaries, $93,800;
Rent, $17,900; Utilities, $1,325; Insurance, $2,025; and Income Tax, $16,950.
O $38,200
$70,525
O $88,425
$234,400
X
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