Award: 2.50 points QS 4-3 Merchandise accounts and computations LO C2 Kleiner Me
ID: 2510963 • Letter: A
Question
Award: 2.50 points QS 4-3 Merchandise accounts and computations LO C2 Kleiner Merchandising Company Accumulated depreciation Beginning inventory Ending Inventory Expenses Net Purchases Net Sales $ 700 14,000 8,400 2,350 18,300 27,500 Krug Service Company Expenses Revenues Cash Prepaid rent Accounts payable Equipment $ 10,300 32,000 1,000 920 200 3,100 Required a Compute gross profit, the goods available for sale, and the cost of goods sold for the merchandiser Hint: Not all information may be necessary. b. Use the above information from a service company and from a merchandiser to compute net income. a. Goods available for sale Cost of goods sold Gross profit b. Net income for Krug Service Company Net income for Kleiner Merchandising Company HintsExplanation / Answer
Answer = A) CALCULATION OF THE COGS & AVALABLE FOR SALE KLEINER MERCHANDISE COMPANY Beginning inventory $ 14,000 Add: Net Purchases $ 18,300 Good available for sale $ 32,300 Less: Ending inventory $ 8,400 Cost of Goods sold $ 23,900 CALCULATION OF THE GROSS PROFIT AND NET INCOME KLEINER MERCHANDISE COMPANY Net Sales $ 27,500 Less: Cost of Goods Sold $ 23,900 Gross Proft $ 3,600 Less: Other Expenses Expenses $ 2,350 Net income $ 1,250 CALCULATION OF THE NET INCOME OF KRUG SERVICE COMPANY Revenue $ 32,000 Less: Expenses $ 10,300 Net revenue $ 21,700 Answer = B) Net income for Krug service Company $ 21,700 Net income for krainer merchandising company $ 1,250
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