10. If a company has net sales of $500,000 and cost of goods sold of$350,000, th

Question

10.

If a company has net sales of $500,000 and cost of goods sold of$350,000, the gross profit rate is

A)

70%.

B)

30%.

C)

15%.

D)

100%.

9. 5 pnts Prepare adjusting entries for the followingtransactions. Omit explanations. 1. Depreciation on equipment is $1,040 for the accountingperiod. 2. Interest owed on a loan but not paid or recorded is$175. 3. There was no beginning balance of supplies and purchased $350of office supplies during the period. At the end of the period$70 of supplies were on hand. 4. Prepaid rent had a $1,000 normal balance prior toadjustment. By year end $500 had expired. 5. Accrued salaries at the end of the period amounted to$900.

Explanation / Answer

1    deprexpense                        1040              accmdepr                                 1040 2) interestexp.                          175              accminterest                            175 3)  supplies                                 70                suppliesexp                                70 4) rentexpense                           500                pre-paidrent                             500 5) salaries                                    900               accruedsalaries                       900 :
350000/500000=.7(100)=70% ......so A is the answer

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