70.2K

Verified Solution

Link Copied!

com *Exercise 5-26 Preparing an income statement-periodic L07 CHECK FIGURE: C. Loss = $1,822 The following is John's Electronic's adjusted account information listed in alphabetical order for the month ended April 30, 2017. A physical count on April 30, 2017, revealed a merchandise inventory balance actually on hand of $2,460. Debit Credit Account $ 2.118 15,600 *** $ 1,600 640 130 201 154 101 611 633 301 302 119 507 506 26,964 9.200 5,700 28 110 Accounts payable.. Accumulated depreciation, trucks Cash.... Depreciation expense, delivery trucks.. Interest expense.... John Yu, capital..... John Yu, withdrawals. Merchandise inventory Purchase discounts...... Purchase returns and allowances Purchases............. Sales... Sales returns and allowances.... Telephone expense, office Telephone expense, store... Transportation in ...... Trucks... Wages expense, office.... Wages expense, selling Totals...... 16,140 505 33,700 413 414 688 689 508 153 623 624 1,740 150 340 380 29,600 4,900 8,000 $78,520 $78,520 Required a. Calculate net sales. b. Calculate cost of goods sold. c. Prepare a classified multiple-step income statement for the month ended April 30, 2017. Using the information in Ex 5-26 on page 373 and 374, what would be the entry to close out those temporary accounts with credit balances - journal entry #1 in the closing journal entries process? Select one: a. Dr. Sales $38,200 and Cru income Summary $38.200 b. Dr. Inventory $2,550 Dr. Purchase Discounts $37. Dr. Purchase Returns & Allowances $110, Dr. Sales $38,200 and Cr. Income Summary $40,897 c. Dr. Purchase Discounts $37 Dr. Purchase Returns & Allowances $110. Dr Sales $38,200 and an Income Summary $38,347 d. Dr. Inventory 56600Dr. Purchase Discounts $37. Dr. Purchase Returns & Allowances $110. Dr. Sales $38,200 and Cr Income Summary $44 947

Answer & Explanation Solved by verified expert

See Answer