Chapter 04 - In-Class Exercises - Solution

Chapter 04 - In-Class Exercises - Solution - Chapter 4...

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Chapter # 4 In-Class Exercises Page 5 of 8 Chapter 04 - In-Class Exercises.docx - 06/09/08) Solutions Question #1 Multi-step format Ajax Company Income Statement For the year ending December 31, 2006 Sales Revenue: Sales 2,654,789 Sales discounts 18,637 Sales returns 2,579 21,216 Net sales revenue 2,633,573 Cost of Goods Sold: Merchandise inventory, January 1st 548,623 Purchases 1,865,419 Less:Purchase discounts 78,329 Net Purchases 1,787,090 Freight and transportation-in 45,719 1,832,809 Total merchandise available for sale 2,381,432 Merchandise inventory, December 31st 586,318 Cost of goods sold 1,795,114 Gross profit on sales 838,459 Operating Expenses: Selling expenses Sales salaries and commissions 132,739 Travel and entertainment 45,931 Advertising expense 31,298 Freight and transportation-out 31,597 Depreciation of sales equipment 8,530 250,095 Administrative expenses: Administrative salaries 215,691 Legal services 28,618 Insurance expense 12,360 Depreciation of office equipment 6,549 263,218 513,313 Income from operations 325,146
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This note was uploaded on 01/20/2011 for the course ACC 301 taught by Professor Staff during the Fall '08 term at Kentucky.

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Chapter 04 - In-Class Exercises - Solution - Chapter 4...

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