Chapter 04 - In-Class Exercises

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

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Chapter # 4 In-Class Exercises Page 1 of 8 Chapter 04 - In-Class Exercises.docx - 06/09/08) Exercise #1 Ajax Company has the following income-related information for 2006: Description Debit Credit Rent revenue 79,315 $ Sales returns 2,579 $ Interest revenue 89,627 Loss on sale of investments 4,536 Dividend revenue 45,296 Freight and transportation-in 45,719 Sales discounts 18,637 Interest expense 215,694 Purchase discounts 78,329 Merchandise inventory, January 1st 548,623 Merchandise inventory, December 31st 586,318 Purchases 1,865,419 Sales 2,654,789 Operating expenses: Administrative salaries 215,691 Advertising expense 31,298 Depreciation of office equipment 6,549 Depreciation of sales equipment 8,530 Freight and transportation-out 31,597 Insurance expense 12,360 Legal services 28,618 Sales salaries and commissions 132,739 Travel and entertainment (Sales) 45,931 Common shares outstanding for 2006 total 40,000. Assume a tax rate of 35%.
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Chapter 04 - In-Class Exercises - Chapter # 4 In-Class...

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