newconnect.mheducation.com nt- Assessment 5 ACC/291 - eCam The Artsan Wines is a
ID: 2400781 • Letter: N
Question
newconnect.mheducation.com nt- Assessment 5 ACC/291 - eCam The Artsan Wines is a retail stoee seang vintage wines. On December 31, 2019, the frms general ledger contained the accounts and belences below A Adjustments 500.00 0D.00 20.00 140.00 140-00 13, 000.00 15,000.0 13,000.80 25, 000.00 500.40 20.00 160.00 3,000.00 Advertising 300.00 Merehandise s,000.00 Equippent 25,000.00 25,000- 3,000.00 3, 000.00 6,000.00 Tquipeent s, O00.00 ,000.00 ,000.00 Equipnent ccumulated 500.00 ,125.00 2, 625-00 Equipmant 20,000.00 20, 000.00 Payable 2,705.00 2,705.0 2,705 0a eity Tax 1.00 .25 000.00 00.00 ,000.00 4,00. 100.00 Payable 32,700.00 2,700.0 Capital 4,110.00 4.830 15, 000.00 33,040.8 1,090.8013,000.00 15,00.00 13,900.0 53,970.00 53,970. 153. 970-00 200.0 200.00 4,000.00 000.00 000.00 91,000-80 Rent Expense ?3,200.00 of 5 Score answerExplanation / Answer
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Analyze:
Inventory turnover = Cost of goods sold/Average inventory = $92225/$14000 = 6.59
Average inventory = (Beginning inventory + Ending inventory)/2 = ($15000 + $13000)/2 = $28000/2 = $14000
ARTISAN WINES Income Statement For the Year Ended December 31, 2019 Operating revenue Sales 153970.00 Less: Sales discounts 200.00 Net sales 153770.00 Cost of goods sold Merchandise inventory, January 1, 2019 15000.00 Add: Purchases 91000.00 Freight-in 225.00 Delivered cost of purchases 91225.00 Less: Purchase returns and allowances 1000.00 Net delivered cost of purchases 90225.00 Goods available for sale 105225.00 Less: Merchandise inventory, December 31, 2019 13000.00 Cost of goods sold 92225.00 Gross profit on sales 61545.00 Operating expenses Rent expense 13200.00 Wages expense 24500.00 Payroll taxes expense 3362.25 Depreciation expense-store equipment 3000.00 Depreciation expense-office equipment 1125.00 Advertising expense 160.00 Supplies expense 140.00 Total operating expenses 45487.25 Income from operations 16057.75 Other income Seminar fee income 4000.00 Other expenses Interest expense 250.00 Net nonoperating income 3750.00 Net income 19807.75Related Questions
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