Course Hero Logo

Midterm Part 2.docx - Midterm Part 2 Jagdeep Kaur (1918152)...

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 1 - 7 out of 7 pages.

Midterm Part 2Jagdeep Kaur (1918152)University Canada WestACCT 621(SPRING – VAN-35)Dr. Tamara KrugMay 25,2020
Answer 1 (a)(1) Missing amountsNet sales = sales revenues – sales return and allowance$80,000= sales revenues - $ 5000Sales revenue= $80,000+$ 5000Sales revenues= $85,000(2) Missing amountGross profit = net sales – cost of goods & services$32,000= $80,000- cost of goodsCost of goods = $48,000(3) Missing amountOperating expense = gross profit- net income= $32,000- $14,000= $18,000
Answer 1 (b)Profit margin= net income ÷ net sales= $ 14,000÷ $80,000= 0.175If in % then = 17.5 %Gross profit rate = gross profit ÷ net sales= $ 34,000÷ $ 80,000 = 0.4= 40 %
Answer 2 (a)fifoDateunitunit costtotal costApril 126$1,3000$ 7,800April 1920$1450$29000Total26$ 36,800(2)average cost method= beginning balance + ending balance / 2= $900+ $ 3,650/ 2= $2,752
Answer 3 (a)Account ageNot yet due1-30 days past due30- 60 days past due61-90 days past due
End of preview. Want to read all 7 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
N/A
Tags
Revenue, Generally Accepted Accounting Principles, Jagdeep Kaur, Dr Tamara Krug

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture