Accounting

Income Statement 5. a. Prepare an income statement for the year ended June 30, 2018. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. You will not need to enter colons (:) on the income statement. Refer to the […]

Adjusted Trial Balance 4. Prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank. Epicenter Laundry ADJUSTED TRIAL BALANCE June 30, 2018 ACCOUNT TITLEDEBITCREDIT1Cash2Laundry Supplies3Prepaid Insurance4Laundry Equipment5Accumulated Depreciation6Accounts Payable7Wages Payable8Common Stock9Retained Earnings10Dividends11Laundry Revenue12Wages Expense13Rent Expense14Utilities Expense15Laundry Supplies Expense16Depreciation Expense17Insurance Expense18Miscellaneous Expense19Totals Place Your Order Here!

Prepare a retained earnings statement Question 1   Foxy Investigative Services is an investigative services firm that is owned and operated by Shirley Vickers. On November 30, 2018, the end of the fiscal year, the accountant for Foxy Investigative Services prepared an end-of-period spreadsheet, a part of which follows: Foxy Investigative ServicesEnd-of-Period SpreadsheetFor the Year Ended

Net income is gross profit less MULTIPLE CHOICE QUESTIONS 43. Net income is gross profit less a. financing expenses. b. operating expenses. c. other expenses and losses. d. other expenses. Ans: B, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting 44. An

TRUE-FALSE STATEMENTS 1. Retailers and wholesalers are both considered merchandisers. Ans: T, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Reporting, AICPA PC: None, IMA: Business Economics 2. The steps in the accounting cycle are different for a merchandising company than for a service company. Ans: F,

Explain the recording of purchases and sales of inventory under a periodic inventory system. In recording purchases under a periodic system, companies must make entries for (a) cash and credit purchases, (b) purchase returns and allowances, (c) purchase discounts, and (d) freight costs. In recording sales, companies must make entries for (a) cash and credit

Prepare a worksheet for a merchandising company. The steps in preparing a worksheet for a merchandising company are the same as for a service company. The unique accounts for a merchandiser are Inventory, Sales Revenue, Sales Returns and Allowances, Sales Discounts, and Cost of Goods Sold.  Place Your Order Here!

Distinguish between a multiple-step and a single-step income statement. A multiple-step income statement shows numerous steps in determining net income, including nonoperating activities sections. A single-step income statement classifies all data under two categories, revenues or expenses, and determines net income in one step. Place Your Order Here!

Explain the recording of sales revenues under a perpetual inventory system. When a merchandising company sells inventory, it debits Accounts Receivable (or Cash) and credits Sales Revenue for the selling price of the merchandise. At the same time, it debits Cost of Goods Sold and credits Inventory for the cost of the inventory items sold.

CHAPTER LEARNING OBJECTIVES 1. Identify the differences between service and merchandising companies. Because of inventory, a merchandising company has sales revenue, cost of goods sold, and gross profit. To account for inventory, a merchandising company must choose between a perpetual and a periodic inventory system. 2. Explain the recording of purchases under a perpetual inventory