1)
The income statement: This is a financial statement that shows the net income earned or net loss suffered by a company through reporting all the revenues earned and expenses incurred by the company over a specific period of time. An income statement is also known as an operations statement, an earnings statement, a revenue statement, or a
To Prepare: A projected single-step income statement of Company W for the year ending October 31, 2017.
2) a)
To Recommend: The implication of the proposed changes.
b)
To Describe: Any possible concerns that have related to the proposed changes.
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- Preparation of SCI for a Merchandising Business Using the Multistep Approach Instructions: Prepare a Statement of Comprehensive Income for the year ended December 31,2020 the using the following account titles listed. Cost of Sales ₱2,675,000 Depreciation expense ₱105,000 Rent expense ₱240,000 Salaries expense ₱360,000 Sales Discount ₱826,500 Sales Returns and Allowances ₱275,500 Sales ₱5,510,000 Supplies expense ₱540,000 Taxes ₱92,400 Utilities expense ₱180,000arrow_forwardHomework i A company reports the following sales-related information. Sales, gross Sales discounts $295,000 Sales returns and allowances 5,900 Sales salaries expense Prepare the net sales portion only of this company's multiple-step income statement. Net sales Multiple-Step Income Statement (Partial) Saved < Prev. $ 22,000 11,900 10 of 10 HH hp narrow_forwardPercentage of Credit Sales Method Ruby Red manufactures, markets, and distributes citrus flavored soft drinks across the globe. Ruby Red hired a collection agency in 2018 to increase collection rates from customers. As a result, Ruby estimates that only 2% of its 2019 credit sales will be written off, compared to the 4% of 2018s credit sales that were estimated to be uncollectible. At December 31, 2019, Ruby Red has a $12,800 credit balance in its allowance for doubtful accounts and credit sales of $1,570,000. Required: Use the percentage of credit sales method to calculate the bad debt expense.arrow_forward
- Question 1 Superfan retails one type of premium computer fans which it sells for $72.6 (GST Inclusive) per unit. The following events took place during the month of September 2021: September 8 Superfan purchased 100 fans at $38.5 (GST Inclusive) per unit in cash. September 15 SuperFan purchased 160 fans at $37.4 (GST Inclusive) per unit on credit. September 20 Superfan sold 330 fans to FansAreUs on credit. September 23 FansAreUs returned 30 fans sold on 20 September which were damaged and written off by SuperFan. September 30 Stocktake revealed 28 fans on hand. Additional information: 1. Superfan had 100 fans valued at $3,100 on hand on 1 September 2021. It uses the moving average cost flow assumption and the perpetual inventory method to account for its inventory movement. 2. The opening balance for the allowance for doubtful debts account was $250 credit on 1 September 2021. SuperFan assumes 2% of all monthly net credit sales to be irrecoverable. Required: Record September 2021…arrow_forwardMarin Shed Solutions sells its largest shed for $1,100 plus HST of 13 %. On May 10, 2024, it sold 26 of these sheds. On May 17,2024, the company sold 85 of these sheds. All sales are cash sales. For each day's sales, calculate the HST. May 10, 2024 May 17, 2024 Question Part Score $ Date $ HST payable Prepare a journal entry to record the sales. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Account Titles Debit --/2 Creditarrow_forwardeBook Show Me How Caloulator Print Item Gross Profit During the current year, merchandise is sold for $366,100 cash and $1,420,000 on account. The cost of the merchandise sold is $1,014,300. what is the amount of the gross profit? Check My Work Email Instructor Save and Exit All work saved. ch %23arrow_forward
- Instructions This assignment is designed for practicing both the retailer/merchandiser accounting cycle and your basic excel skills. Below are select sales transactions for two companies. You will need to enter the missing pieces of each transaction on the journal entry tab. Each missing piece of information is highlighted in yellow. The only cell where an actual number is to be input is on the journal entries worksheet. Please note: not every yellow cell requires input (it could be left blank if appropriate). After completing the journal entries, you must then complete the missing pieces of the T accounts, trial balance, and statements highlighted in yellow. Only excel functions may be used to calculate the appropriate cell value on these pages. DO NOT INPUT THE ACTUAL NUMBER INTO THE T ACCOUNTS, TRIAL BALANCE, OR STATEMENTS. Use excel functions (such as making a cell equal another from the journal entry page, summing numbers together, or using the plus or minus symbols to help you…arrow_forwardit View History M faith@.. tems 37.66% ··· Bookmarks Window AOL Ma.... B E C eBook U Sales Mail - F... Cost of goods sold Help Operating income Expenses: Selling expenses Administrative expenses The following multiple-step, income statement was prepared for Carlsbad Company contains errors: CARLSBAD COMPANY Income Statement For the Year Ended February 28, 2018 Delivery expense Total expenses Other expense: Interest revenue Gross profit R V Portal h... Check My Work 10 more Check My Work uses remaining. % G Chapter... B v2.cengagenow.com Prepare a corrected income statement for Carlsbad Company for the year ended February 28, 2018. Carlsbad Company Income Statement 6 $ 1,800,000 1,350,000 112,500 H C Cengag.. 9,495,000 (5,962,500) $3,532,500 (3,262,500) 270,000 90,000 $180,000 All work saved. N MacBook Pro ** W Activity... 8 M FA 9 K Save and Exit Submit Assignment for Grading 1arrow_forwardINTERPRETATION OF FINANCIAL STATEMENTS 1. CAMPERS PARADISE sells tents, camping equipment and other outdoor itemo at a mark-up of 25%. INSTRUCTIONS Study the information given below to answer the questions which follow. INFORMATION A. Extract of the INCOME STATEMENT for the vear ended 30 November 2010. Sales 2 400 000 Cost of Sales Gross Profit 20 000 Other Operating Income 200 000 Operating Expenses Operating Profit for year Interest Expenses 12 000 Interest Income Net Profit for year B. Balance Sheet as at 30 November 2010, 2010 2009 Tangible Assets (Fixed Assets) 850 300 720 500 Inventory Trade and other Receivables 480 000 562 200 88 975 24 300 Cash and Cash Equipments 2 200 000 2 000 000 Capital 400000 Net Profit Drawings 35 000 12 000 Loan: BC Bank 320 000 350 000 Trade and other Payable 601 900 508 325arrow_forward
- Title Brahma Limited has three departments and submits the following information for the year ending on... Description Brahma Limited has three departments and submits the following information for the year ending on 31st March, 2013 : Particulars A B C Total (~) Purchases (units) 5,000 10,000 15,000 ---- Purchases (Amount) ---- ---- ---- 8,40,000 Sales (units) 5,200 9,800 15,300 ---- Selling price (~ per unit) 40 45 50 ---- Opening stock (units) 400 600 700 ---- You are required to prepare Departmental Trading Account of Brahma Limited assuming that the rate of profit on sales is uniform in each case.arrow_forwardSales Cost of goods sold Sales returns and allowances Operating expenses: Thompson's Company Income Statement For the Month Ended August 31, 2021 Net income $ 6,700 1,100arrow_forwardAccounts Receivable Turnover and Days' Sales in Receivables Classic Company designs, markets, and distributes a variety of apparel, home decor, accessory, and fragrance products. The company's products incluc such brands as Polo by Classic, Classic Purple Label, Classic, Polo Jeans Co., and Chaps. Polo Classic reported the following for two recent years: For the Period Ending Year 2 Year 1 $4,795,005 $4,730,400 Sales 543,850 558,450 Accounts receivable Assume that accounts receivable were $492,750 at the beginning of Year, 1. a. Compute the accounts receivable turnover for Year 2 and Year 1. Round your answers to two decimal places. Year 2: Year 1: b. Compute the days' sales in receivables for Year 2 and Year 1. Round your final answers to one decimal place. Use 365 days per year in your calculations. Year 2: days Year 1: days C. The change in the accounts receivable turnover from year 1 to year 2 indicates a(n) decrease v in the efficiency of collecting accounts receiv and is a(n)…arrow_forward
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningFinancial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning