In preparing the accounts of television dealer for the year end December 31st 1996, the following information is extracted Stock 21st january at cost 30$ each 100 television purchases for the year all at 30$ 400 television Stock at 31st December valued at cost 120 television The television sets were sold at 40$ each You are required to prepare a trading profit and loss account and from this accounting answers to the following questions. a. State the number of television sold during the year b. What were the total sales in $? c. Cost of goods sold d. Average stock held e. Calculate the rate of stock turnover. £ Gross profit. g. What is the percentage of gross profit on sales? h. Mark - up i. If the retailer had sold the television set at 44$ each, what would be ( i)The percentage of gross profit on sales (ii) The percentage of gross profit on cost price
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Step 1
- Opening stock on January 21st: 100 televisions - Purchases during the year: 400 televisions - Closing stock on December 31st: 120 televisions - Total available for sale = Opening stock + Purchases = 100 + 400 = 500 televisions - Number of televisions sold = Show more…
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On December 1, Discount Electronics Ltd. has three DVD players left in stock. All are identical, all are priced to sell at $85. One of the three DVD players left in stock, with serial #1012, was purchased on June 1 at a cost of $52. Another, with serial #1045, was purchased on November 1 for $48. The last player, serial #1056, was purchased on November 30 for $43. (a)Calculate the cost of goods sold using the FIFO periodic inventory method assuming that two of the three players were sold by the end of December, Discount Electronics' year-end. (b) If Discount Electronics used the specific identification method instead of the FIFO method, what would Bargain's cost of goods sold be if the company wished to minimize earnings? If Discount Electronics used the specific identification method instead of the FIFO method, what would Bargain's cost of goods sold be if the company wished to maximize earnings?
Akash M.
Item a: The adjusted trial balance of Entity B included the following selected accounts: Debit Credit Sales Revenue $900,000 Sales Returns and Allowances $45,000 Sales Discounts $18,500 Cost of Goods Sold $376,425 Freight-Out $7,000 Advertising Expense $35,000 Interest Expense $22,000 Salaries and Wages Expense $125,000 Rent Expense $120,000 Depreciation Expense $12,000 Income tax expense $40,000 Dividend Revenue $45,000 Instructions: 1. Use the above information to prepare a multiple-step income statement for the year ended December 31, 2023. 2. Calculate the profit margin and gross profit rate. 3. Suggest three ways that either the gross profit rate or profit margin might be increased. Item b: Entity C sold Entity D $15,000 of merchandise, terms 2/10, net 30. Entity C paid $5,000 for the merchandise. Instructions: 1. Journalize the sale on Entity C's books. 2. If Entity D returned $3,000 of the merchandise, and paid for the remainder 9 days from the date of the sales invoice, how much did Entity D remit (pay) Entity C?
Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions Units Unit Cost Beginning inventory, January 1 2,700 $45 Transactions during the year: a. Purchase, January 30 3,050 60 b. Sale, March 14 ($100 each) (2,350) c. Purchase, May 1 1,750 75 d. Sale, August 31 ($100 each) (2,000) Assuming that for Specific identification method (item 1d) the March 14 sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the sale of August 31 was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1. Required: 1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: (Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Amount of Goods Available for Sale Ending Inventory Cost of Goods Sold a. Last-in, first-out $ 435,750 b. Weighted average cost $ 435,750 c. First-in, first-out $ 435,750 d. Specific identification $ 435,750
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