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

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

Step-by-step 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