Question

Using your accounting knowledge, fill in the following separate income statements a through e. Identify any negative amount by putting it in parentheses.
Statements:
a b c d e
Sales $100,000 $805,000 $2,000 $450,000 $100,000
Cost of goods sold
Merchandise inventory (beginning) $10,000 $0 $100 $80,000 $25,000
Total Cost of merchandise purchases $30,000 $300,000 $0 $100,000 $10,000
Merchandise inventory (ending) ($10,000) $10,000 ($10) ($50,000) ($10,000)
Cost of goods sold $30,000 $290,000 $90 $130,000 $25,000
Gross Profit $70,000 $515,000 $1,910 $320,000 $75,000
Expenses $10,000 $150,000 $1,000 $400,000 $50,000
Net Income (loss) $60,000 $365,000 $910 ($80,000) $25,000

Answer 1

Answer:

Income Statements           a             b                c                d                 e

Sales                         $100,000   $805,000  $2,000   $450,000  $100,000  

Cost of goods sold  ($30,000)  ($290,000)     ($90)  ($130,000) ($25,000)

Gross Profit               $70,000     $515,000    $1,910   $320,000   $75,000

Expenses                  ($10,000)   ($150,000) ($1,000) ($400,000) ($50,000)

Net Income (loss)     $60,000    $365,000       $910    ($80,000)   $25,000

Explanation:

a) Data and Calculations:

Income Statements             a           b                 c                  d                 e

Sales                            $100,000  $805,000  $2,000  $450,000  $100,000

Cost of goods sold

Merchandise inventory

(beginning)                  $10,000     $0               $100     $80,000   $25,000

Purchases                   $30,000   $300,000     $0       $100,000    $10,000

inventory (ending)      ($10,000)    ($10,000)   ($10)     ($50,000)  ($10,000)

Cost of goods sold     $30,000   $290,000      $90    $130,000   $25,000

Gross Profit                 $70,000    $515,000  $1,910    $320,000   $75,000

Expenses                     $10,000    $150,000  $1,000   $400,000   $50,000

Net Income (loss)       $60,000   $365,000     $910    ($80,000)  $25,000