BUS591homework-week3 - Week Three EXERCISE 5-2 Sept 6...

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Week Three EXERCISE 5-2 Sept. 6 Inventory ......................................................... 1,650 Accounts Payable ................................... 1,650 9 Inventory ......................................................... 50 Cash ......................................................... 50 10 Accounts Payable .......................................... 66 Inventory .................................................. 66 12 Accounts Receivable ..................................... 690 Sales Revenue ........................................ 690 Cost of Goods Sold ........................................ 520 Inventory .................................................. 520 14 Sales Returns and Allowances ....................... 45 Accounts Receivable ............................... 45 14 Inventory ........................................................... 34 Cost of Goods Sold .................................. 34 20 Accounts Receivable ....................................... 760 Sales Revenue .......................................... 760 Cost of Goods Sold ......................................... 570 Inventory ................................................... 570
EXERCISE 5-6 (a) YU Co. Income Statement For the Month Ended January 31, 2012 Sales revenues Sales revenue ............................................... $370,000 Less: Sales returns and allowances ........................................ $20,000 Sales discounts ................................ 8,000 28,000 Net sales ....................................................... 342,000 Cost of goods sold .............................................. 212,000 Gross profit .......................................................... 130,000 Operating expenses Salaries and wages expense ...................... 60,000 Rent expense ................................................ 32,000 Insurance expense ...................................... 12,000 Freight-out .................................................... 7,000 Total operating expenses .................... 111,000 Income before income taxes .............................. 19,000 Income tax expense ............................................ 4,750 Net income ........................................................... $ 14,250 (b) Profit margin ratio = = 4.2% Gross profit rate = = 38.0%
PROBLEM 5-5B KRITEK COMPANY Income Statement For the Year Ended December 31, 2012 Sales revenues Sales revenue .......................................... $708,000* Less: Sales discounts ...........................

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