Acct231-Chap6-homework

Acct231-Chap6-homework - JesseH. EXERCISES Ex 61 a...

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Texas Southern University Jesse H. Jones School of Business Accounting 231 – Homework – Chapter 6 EXERCISES Ex. 6–1 a. $318,000 ($795,000 – $477,000) b. 40% ($318,000 ÷ $795,000) c. No. If operating expenses are less than gross profit, there will be a net income. On the other hand, if operating expenses exceed gross profit, there will be a net loss. Ex. 6–3 a. Purchases discounts, purchases returns and allowances b. Freight in c. Merchandise available for sale d. Merchandise inventory (ending) Ex. 6–4 a. Cost of merchandise sold: Merchandise inventory, December 1, 2009. ................................. $ 210,000 Purchases. ................................................... $1,400,000 Less: Purchases returns and allowances. .................................... $20,000 Purchases discounts. ...................... 18,500 38,500 Net purchases. ............................................ $1,361,500 Add freight in. .............................................. 14,100 Cost of merchandise purchased. ........................................ 1,375,600 Merchandise available for sale. ................. $1,585,600 Less merchandise inventory, November 30, 2010. ............................... 185,000 Cost of merchandise sold. ......................... $1,400,600 b. $849,400 ($2,250,000 – $1,400,600)
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Ex. 6–5 1. The schedule should begin with the August 1, 2009, not the July 31, 2010, merchandise inventory. 2. Purchases returns and allowances and purchases discounts should be deducted from
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This note was uploaded on 05/04/2011 for the course ACCT 231 taught by Professor Eric during the Spring '11 term at Texas Southern.

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Acct231-Chap6-homework - JesseH. EXERCISES Ex 61 a...

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