Accounting Midterm - Basic Principles of Accounting TAKE...

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Basic Principles of AccountingTAKE HOME ASSIGNMENTInventoryPart AProblem 6-1A.1) MULTIPLE-STEP INCOME STATEMENTFor year ended March 31, 2008Revenue from sales:Sales1,542,000Less: sales returns27,720Sales discounts26,280NET SALES1,488,000Cost of merch. sold930,000Gross Profit558,000Operating Expenses:Selling:Sales salaries expenses207,840Advertising expense52,560Depr. expense – store equip.7,680Misc. selling expense1,920Total selling exp:270,000Administrative Exp:Office salaries expense:100,980Rent expense:37,620Depr. expense – office equip.15,240Insurance expense:4,680Office supplies expense:1,560Misc. administrative expense:1,920Total admin. exp:168,000Total operating expenses:438,000Income from Operations120,000Other Income and ExpenseInterest Revenue(6,000)NET INCOME114,0002) STATEMENT OF OWNER’S EQUITYFor Year Ended March 31, 2008Tiffany Garland, capital April 1, 2007564,900Net income for year114,000Less Withdrawals42,000Increase in Owner’s Equity72,000
Tiffany Garland, capital March 31, 2008636,0003) BALANCE SHEETMarch 31, 2008ASSETSCurrent Assets:Cash184,500Accounts Rec.145,200Merch Inventory210,000Office supplies6,720

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Term
Spring
Professor
Chambers
Tags
Accounting, Balance Sheet, Income Statement, Revenue, Sales, 1981, Generally Accepted Accounting Principles, Tiffany Garland

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