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rates specified in the Income Tax Act.
All sales are for cash (no credit sales) and are recorded on the cash register. Not all sales are
rung up on the register.
KCS had printed a large quantity of flyers that it has distributed in the neighbourhood from
time to time to promote the store. Mr. Wu estimated that there would be enough flyers to last
about a year when they were printed. About 30 percent of the flyers remained at the end of the
year. However, Mr. Wu noted that some of the remaining flyers might not be usable because
they were damaged when water leaked into the storage room during a recent storm. The full
cost of the flyers was expensed in 2009.
Inventory is counted on the last day of the year. Cost of goods sold is calculated by adding the
opening inventory to purchases made duri...
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This document was uploaded on 02/28/2014 for the course ACC 110 at Ryerson.
- Fall '12
- Financial Accounting