rill in the blanks (a) theough (g) for the Hendricks Company for cach of the inc
ID: 2518110 • Letter: R
Question
rill in the blanks (a) theough (g) for the Hendricks Company for cach of the incoms inconse statements for 2009 to 2011 Hendricks Company Income Statements 7500 1 510,000 ferchandisc inventory (begini lerchandise inventory (ending) Cost of goods sold Gross protit ating ex 750 Answers: (a). 7 points 1S, A company markets a climbing kit and uses the periadic inventory system to account for its merchandise The beginning balance of the inventory and its transactions during January were as Beginning balance of 18 units at S13 each Purchased 30 units at $14 each Sold 24 units at 530 selling price each Purchased 24 units at $17 each Sold 27 units at $30 selling price each. January 19 January 20 January 27 Required Using the Weighted Average method of valuation, determine the cost of sales and value of the ending 8 points 14. The understatement of the beginning inventory balance causes A Cost of goods sold to be understated and net income to be understated B. Cost of goods sold to be understated and net income to be overstated C Cost of goods sold to be overstated and net income to be overstated 1 point D Cost of goods sold to be overstated and net income to be understated 15. Which of the following statements is true given the data below? Company A $250,000 $55,000 any B $400,000 $55,000 Sales Ending Accounts Receivable A Both companies have the same degree of liquidity with regard to their accounts receivables B. Company A is likely to collect account receivables more quickly than Company B C. Company B is likely to collect account receivables more quickly than Company A D. Company A and Company B will likely collect account receivables at the same time 3 points 16. Given the following balances from selected accounts in the ledger of Kingwood Supplier, determine the cost of good sold by the company, for the month. Cash Freight-out $25,000 3,400 45,900 $ 8,750 2,600 3,900 1,300 9,100 Purchases returns Sales returns Beginning inventory Purchases allowance Closing inventory Accounts payable 11,400 Freight-in 975 CAnau erptual inventory system that is not used in the periodic inventory system is A. Cost of sals Accounts Payable B. Sales DiscountExplanation / Answer
Solution for Q-12
C) Gross Profit= Sale - Cost of Goods Sold =($7500-$2770)=$4730 b)Merchandise inventory ( Ending)= Merchandised Inventory( Beginning) of 2010 =$375 a)Mechandise Inventory (Beginning) = Cost of Goods Sold + Mechandise Inventory Ending - Total Cost of Merchandise Purchases = $2,770 + $375 - $2,400 = $745 (d) Cost of Goods sold (2010) = Mechandise Inventory beginning + Total cost of merchandise purchase - Merchandise inventory ending = $375 + $3,625 - $750 = $3,250 e) Net Income = Gross Profit - Operating Expenses = $6,750 - $3,750 = $3,000 f)Sales (2011) = Cost of Goods Sold + Gross Profit = $5,000 + $5,200 = $10,200 g)Operating Expenses = Gross Profit - Net INcome = $5,200 - $2,500 = $2,700Related Questions
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