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Exercise 4-1 Computing revenues, expenses, and income LO C1 Using your accountin

ID: 2329989 • Letter: E

Question

Exercise 4-1 Computing revenues, expenses, and income LO C1 Using your accounting knowledge, find the missing amounts in the following separate income statements. (Amounts to be deducted should be indicated by a minus sign.) Sales $ 62,000 $ 43,500 $ 46,000 $ 25,600 Cost of goods sold Merchandise inventory (beginning) Total cost of merchandise purchases Merchandise inventory (ending) Cost of goods sold 8,000 32,000 (3,000)(9,000)(6,600) 4,560 6,600 8,000 38,000 17,050 7,500 34,050 16,000 7,000 Gross profit Expenses Net income (loss) 45,600 3,600 $ 16,850$ (8,400)$ 42,000 3,750 12,150 10,000 10,650 6,000

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars a) Sales         62,000.00 Cost of goods sold : Merchandise inventory (beginning)           8,000.00 Total cost of merchandise purchases         38,000.00 Merchandise inventory (ending) = 8000 + 38000 - 34050       (11,950.00) Cost of goods sold         34,050.00 Gross profit = 62000 - 34050         27,950.00 expenses         10,000.00 Net income (Loss) = 27,950 - 10,000         17,950.00 Paticulars b) Sales         43,500.00 Cost of goods sold : Merchandise inventory (beginning)         17,050.00 Total cost of merchandise purchases = 16000 + 3000 -17050           1,950.00 Merchandise inventory (ending)         (3,000.00) Cost of goods sold         16,000.00 Gross profit = 10650 + 16850         27,500.00 expenses         10,650.00 Net income (Loss)         16,850.00 Paticulars c) Sales         46,000.00 Cost of goods sold : Merchandise inventory (beginning)           7,500.00 Total cost of merchandise purchases = 42250 + 9000 - 7500         43,750.00 Merchandise inventory (ending)         (9,000.00) Cost of goods sold = 46000 - 3750         42,250.00 Gross profit           3,750.00 expenses         12,150.00 Net income (Loss)         (8,400.00) Paticulars d) Sales = 33400 + 45600         79,000.00 Cost of goods sold : Merchandise inventory (beginning)           8,000.00 Total cost of merchandise purchases         32,000.00 Merchandise inventory (ending)         (6,600.00) Cost of goods sold = 8000 + 32000 - 6600         33,400.00 Gross profit         45,600.00 expenses           3,600.00 Net income (Loss)         42,000.00 Paticulars e) Sales         25,600.00 Cost of goods sold : Merchandise inventory (beginning)           4,560.00 Total cost of merchandise purchases           6,600.00 Merchandise inventory (ending) = 4560 + 6600 -7000         (4,160.00) Cost of goods sold           7,000.00 Gross profit = 25600 -7000         18,600.00 expenses           6,000.00 Net income (Loss) = 18600 - 6000         12,600.00