Chapter 4-7 In class assignment- submitted in Canvas
Interest revenue |
$2,000 |
Sales revenue |
$120,000 |
Income tax expense |
8,200 |
Cost of goods sold |
62,000 |
Selling expenses |
1,800 |
Salaries expense |
17,500 |
Utilities expense |
900 |
Rent expense |
1,200 |
1) Correct Cash balance = 15000+5000-4500 = 15500
2) Balance in AUA Account = 50000*6% = 3000
3) Beginning inventory = 25000+665000-650000 = 40000
4) Calculate net income
Sales revenue | 120000 |
Interest revenue | 2000 |
Total revenue | -122000 |
Expense | |
cost of goods sold | 62000 |
Salaries expense | 17500 |
Rent expense | 1200 |
Selling expense | 1800 |
Utilities expense | 900 |
Income tax expense | 8200 |
Total expense | -91600 |
Net income | 30400 |
5) Book value =125000-(125000-25000/5*3) = 65000
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