80.2K

Verified Solution

Link Copied!

Financial X M MHE Reader 670#epubc%26%2F234%5Bdata-uuid-a61addb43cdotcoref7887565896d3e%5D%264%2F25Bdata-ud-70112e8c71614ca7942eeca3d7780290550X2512X58data-uuid-524 Problem 5-5B Preparing adjusting entries and income statements; computing gross margin, acid-test, and current ratios A1 A2 P3 P4 N The following unadjusted trial balance is prepared at fiscal year-end for Foster Products Company. Foster Products Company uses a perpetual inventory system. It categorizes the following accounts as selling expenses: Depreciation Expense-Store Equipment, Sales Salaries Expense, Rent Expense --Selling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative. Credit FOSTER PRODUCTS COMPANY Unadjusted Trial Balance October 31 Debit Cash $ 7,400 Merchandise inventory 24,000 Store supplies 9,700 Prepaid insurance 6,600 Store equipment 81,800 Accumulated depreciation-Store equipment Accounts payable D. Foster, Capital D. Foster, Withdrawals 2,000 Sales Sales discounts 1,000 Sales returns and allowances 5.000 Cost of goods sold 75,800 Depreciation expense-Store equipment Sales salaries expense 31,500 Office salaries expense 31,500 Insurance expense Rent expense-Selling space 13,000 1200 ROLA $ 32,000 18,000 43,000 227,100 Financial X M MHE Reader 670#epubc%26%2F234%5Bdata-uuid-a61addb43cdotcoref7887565896d3e%5D%264%2F25Bdata-ud-70112e8c71614ca7942eeca3d7780290550X2512X58data-uuid-524 Problem 5-5B Preparing adjusting entries and income statements; computing gross margin, acid-test, and current ratios A1 A2 P3 P4 N The following unadjusted trial balance is prepared at fiscal year-end for Foster Products Company. Foster Products Company uses a perpetual inventory system. It categorizes the following accounts as selling expenses: Depreciation Expense-Store Equipment, Sales Salaries Expense, Rent Expense --Selling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative. Credit FOSTER PRODUCTS COMPANY Unadjusted Trial Balance October 31 Debit Cash $ 7,400 Merchandise inventory 24,000 Store supplies 9,700 Prepaid insurance 6,600 Store equipment 81,800 Accumulated depreciation-Store equipment Accounts payable D. Foster, Capital D. Foster, Withdrawals 2,000 Sales Sales discounts 1,000 Sales returns and allowances 5.000 Cost of goods sold 75,800 Depreciation expense-Store equipment Sales salaries expense 31,500 Office salaries expense 31,500 Insurance expense Rent expense-Selling space 13,000 1200 ROLA $ 32,000 18,000 43,000 227,100

Answer & Explanation Solved by verified expert

See Answer