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Economic concepts are the a conventions used in the

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20Economic concepts are the:aconventions used in the preparation of accounting reportsbregulations enforced by the government in the preparation of accounting reportscideas that guide preparation of accounting reportsdrules that apply to the preparation of accounting reports
Sales of merchandise to customers on credit$329,900Sales of merchandise to customers for cash95,750Cost of merchandise sold on credit215,000Cost of merchandise sold for cash62,400Purchases of merchandise from suppliers on credit248,700Purchases of merchandise from suppliers for cash53,100Collections from customers on accounts receivable343,500Cash payments to suppliers on accounts payable308,600Operating expenses (all paid in cash)93,500Requireda.Prepare the income statement of DSE for the fiscal year just completed.b.Estimate the changes to balance sheet accounts of DSE at the end of the fiscal year just completedindirect method.c.Prepare the statement of cash flows of DSE for for the fiscal year just completed utilizing theProblem 2(20 points, DSE Indirect)For the fiscal year just completed, Dollar Sine Enterprises had thefollowing summary informationavailable concerning operating activities. DSE had no investing orfinancing activities this year. DSE has no long-term assets or liabilities.
Problem 3(20 Points, Mega) The following events occurred for Mega Co. during January 2020, its firstmonth of business:Jan 3Owners contributed $40,000 to the business.Jan 5Mega received $25,000 from a bank in exchange for a note payable with maturity 3 years. Thenote carries an interest of 3.65% per year, payable on Jan 5 of each year, starting Jan 5 2021.Jan 8Mega paid $35,000 for equipment with a useful life of 2 years.Jan 10Mega paid $20,000 for merchandise (inventory).Jan 11Mega paid $2,000 for supplies used in January.Jan 15Mega received $12,000 from customers for the sale of merchandise. The merchandise costis $8,000.Jan 22Mega received $9,000 from customers for the sale of merchandise. The merchandise cost is$6,000.Jan 31Mega paid $3,000 to employees for wages earned in January.Jan 31The company paid $800 for utilities used in January.Requireda.Prepare journal entries for the preceding transactions and any necessary adjustments.b.Post the journal entries to T-accounts.c.Prepare January 2020 income statement for Mega Co.d.Prepare the January 31, 2020 (end of day) balance sheet for Mega Co.

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Term
Spring
Professor
N/A
Tags
Balance Sheet, Generally Accepted Accounting Principles

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