H Take Test: Midterm Test- x + -) ? fi 0 b. accum lated depreciation and other e

Question

H Take Test: Midterm Test- x + -) ? fi 0 b. accum lated depreciation and other expenses https://asablackboard.com/webapps assessment take/launchysp?course, assessment id 102321&course; c an error of $28.000 m balancing the accounts. od a net los f $6.00 QUESTION 23 Prepare the cost of poods sold section of the income statenment for L. I. Grill from the information given below Merchandise Inventory Jamsary 1, 20- Merchandise Investory, December 31, 20- Purchases Purchases Rebarns and Allowances Purchases Discots Freight-I $57,700 8,300 98,000 6,100 8.175 1.100 Pah p QUESTION 24 Uoearsed Revesne is reported as ala) on the balance sheet QUESTION 25 Usder the cadh bass of accousting revease ss secorded when eamed regardless of when cash is recerved False

Explanation / Answer

Solution 23:

Solution 24:

Unearned revenue is reported as a liability on the balance sheet.

Solution 25:

Under cash basis of accounting revenue is recorded when cash is received regardless when earned.

Hence statement of question is false.

Cost of goods sold section of Income statement Particulars Amount Beginning merchandise inventory $57,700.00 Add: Purchases $98,000.00 Less: Purchases return and allowances -$6,100.00 Less: Purchases discounts -$8,175.00 Add: Freight In $1,100.00 Less: Ending merchandise inventory -$48,300.00 Cost of Goods Sold $94,225.00

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