Question

Typewritten answers only, please, no handwritten answers. Thank you. The beginning account balances for Terry’s Auto...

Typewritten answers only, please, no handwritten answers. Thank you.

The beginning account balances for Terry’s Auto Shop as of January 1, 2018, follows:

Account Titles Beginning Balances
Cash $ 6,040
Inventory 3,180
Common Stock 7,430
Retained Earnings 1,790

The following events affected the company during the 2018 accounting period:

Purchased merchandise on account that cost $4,260.

The goods in Event 1 were purchased FOB shipping point with freight cost of $285 cash.

Returned $420 of damaged merchandise for credit on account.

Agreed to keep other damaged merchandise for which the company received an $265 allowance.

Sold merchandise that cost $2,600 for $4,840 cash.

Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $115 cash.

Paid $2,990 on the merchandise purchased in Event 1.

Prepare an income statement and a statement of cash flows for 2018. (Assume that closing entries have been made.)

Prepare an income statement.
TERRY'S AUTO SHOP
Income Statement
For the Year Ended December 31, 2018
Operating expenses   

Prepare a statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)
TERRY'S AUTO SHOP
Statement of Cash Flows
For the Year Ended December 31, 2018
Cash flow from operating activities
Net cash flow from operating activities
Cash flows from investing activities
Cash flows from financing activities
Net change in cash
Ending cash balance

Typewritten answers only, please, no handwritten answers. Thank you.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

TERRY'S AUTO SHOP
Income Statement
For the Year Ended December 31, 2018
Net Sales 4,840
Cost of goods sold 2,600
Gross Margin 2,240
Operating Expense
Transportation-out 115
Net Income 2,125
TERRY'S AUTO SHOP
Statement of Cash Flows
For the Year Ended December 31, 2018
Cash Flow From Operating activities
Cash Inflow from Customers 4,840
Cash Outflow for expenses -115
Cash Outflow for inventory -3,295
Net Cash Flow From Operating activities 1,430
Cash Flow From Investing activities 0
Cash Flow From Financing activities 0
Net Change in Cash 1,430
Plus:Beginning Cash Balance 6180
Ending Cash Balance 7,610
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Typewritten answers only, please, no handwritten answers. Thank you. The beginning account balances for Terry’s Auto...
Typewritten answers only, please, no handwritten answers. Thank you. The beginning account balances for Terry’s Auto Shop as of January 1, 2018, follows: Account Titles Beginning Balances Cash $ 6,040 Inventory 3,180 Common Stock 7,430 Retained Earnings 1,790 The following events affected the company during the 2018 accounting period: Purchased merchandise on account that cost $4,260. The goods in Event 1 were purchased FOB shipping point with freight cost of $285 cash. Returned $420 of damaged merchandise for credit on...
The following information applies to the questions displayed below.] The trial balance for Terry’s Auto Shop...
The following information applies to the questions displayed below.] The trial balance for Terry’s Auto Shop as of January 1, Year 2, follows: Account Titles Debit Credit Cash $ 14,760 Inventory 3,170 Common Stock $ 7,310 Retained Earnings 10,620 Total $ 17,930 $ 17,930 The following events affected the company during the Year 2 accounting period: Purchased merchandise on account that cost $4,140. The goods in Event 1 were purchased FOB shipping point with freight cost of $215 cash. Returned...
At the beginning of 2018, the Redd Company had the following balances in its accounts:   ...
At the beginning of 2018, the Redd Company had the following balances in its accounts:    Cash $ 8,300 Inventory 2,300 Common stock 7,800 Retained earnings 2,800    During 2018, the company experienced the following events: Purchased inventory that cost $5,800 on account from Redd Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $530 were paid in cash. Returned $300 of the inventory that it had purchased because the inventory was damaged in...
At the beginning of 2018, the Redd Company had the following balances in its accounts:   ...
At the beginning of 2018, the Redd Company had the following balances in its accounts:    Cash $ 8,600 Inventory 2,600 Common stock 8,100 Retained earnings 3,100    During 2018, the company experienced the following events: Purchased inventory that cost $6,100 on account from Redd Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $560 were paid in cash. Returned $350 of the inventory that it had purchased because the inventory was damaged in...
During Year 2, the company experienced the following events: Purchased inventory that cost $5,400 on account...
During Year 2, the company experienced the following events: Purchased inventory that cost $5,400 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $490 were paid in cash. Returned $450 of the inventory it had purchased because the inventory was damaged in transit. The seller agreed to pay the return freight cost. Paid the amount due on its account payable to Ross Company within the cash discount period. Sold inventory...
Please- only typewritten answers, no handwritten answers, please. The Excel file attached contains the Balance Sheet...
Please- only typewritten answers, no handwritten answers, please. The Excel file attached contains the Balance Sheet and Income Statement for ABC Corp. ABC Corp is currently planning for next year's sales and asked their financial analysts to prepare a financial plan for the next year so the company can begin to address any outside investment requirements. Calculate the internal growth rate and sustainable growth rate for ABC Corp. What do these numbers mean? Income Statement Sales $80,518,460 COGS -$58,672,892 Other...
At the beginning of Year 2, the Redd Company had the following balances in its accounts:...
At the beginning of Year 2, the Redd Company had the following balances in its accounts: Cash $ 17,300 Inventory 7,500 Land 2,700 Common stock 16,000 Retained earnings 11,500 During Year 2, the company experienced the following events: Purchased inventory that cost $11,900 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $870 were paid in cash. Returned $800 of the inventory it had purchased from Ross Company because the...
Effect of purchase returns and allowances and purchase discounts on the financial statements: Perpetual system The...
Effect of purchase returns and allowances and purchase discounts on the financial statements: Perpetual system The following events were completed by Dana's Imports in September 2018: Sept. 1 Acquired $50,000 cash from the issue of common stock. 1 Purchased $28,000 of merchandise on account with terms 2/10,n/30. 5 Paid $600 cash for freight to obtain merchandise purchased on September 1. 8 Sold merchandise that cost $15,000 to customers for $31,000 on account, with terms 2/10,n/30 8 Returned $600 of defective...
[The following information applies to the questions displayed below.] At the beginning of Year 2, the...
[The following information applies to the questions displayed below.] At the beginning of Year 2, the Redd Company had the following balances in its accounts: Cash $ 15,300 Inventory 5,500 Land 2,300 Common stock 12,000 Retained earnings 11,100 During Year 2, the company experienced the following events: Purchased inventory that cost $11,500 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $830 were paid in cash. Returned $600 of the...
Starting balances: cash:83600 dividends:135000 accounts receivable: 233900 sales: 5069000 inventory: 624400 cost of goods sold: 2,823,000...
Starting balances: cash:83600 dividends:135000 accounts receivable: 233900 sales: 5069000 inventory: 624400 cost of goods sold: 2,823,000 Estimated returns inventory: 28000 sales salaries expense: 664800 prepaid insurance: 16800 advertising expense: 281000 store supplies: 11400 depreciation expense: - store equipment: 69500 store supplies expense: - accumulated depreciation- store equipment: 6700 miscellaneous selling expense: 12600 office salaries expense: 382100 accounts payable:96000 rent expense: 83700 salaries payable:- insurance expense:- customers refunds payable: 50000 miscellaneous administrative expense: 7800 common stock: 100000 retained earnings: 585300 During...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT