Based on the following transactions, answer the following questions. Inventory costing $63,000 was purchased on account....

  

Transcribed Image Text:

Based on the following transactions, answer the following questions. Inventory costing $63,000 was purchased on account. Inventory costing $54,000 was sold for $90,000. Eighty percent of the sales were for cash. ii. iii. iv. V. vi. (a) Cash collected from credit customers (those who bought on account) totalled $18,000. A lease was signed at the beginning of the year, requiring monthly payments of $900. The rent for the first month was paid when the lease was signed. After that, the $900 rent was paid on the last day of each month, to cover the following month. Supplies costing $5,000 were purchased for cash. At the end of the year, $500 of the supplies were still unused. Wages of $33,800 were paid during the year. Also, wages of $500 remained unpaid at year end. Calculate the revenues, expenses, and net income that would be reported on the cash basis. (Enter loss amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Expenses Net Income / (Loss) $Enter a dollar amount. $Enter a dollar amount. $Enter a dollar amount. Based on the following transactions, answer the following questions. Inventory costing $63,000 was purchased on account. Inventory costing $54,000 was sold for $90,000. Eighty percent of the sales were for cash. ii. iii. iv. V. vi. (a) Cash collected from credit customers (those who bought on account) totalled $18,000. A lease was signed at the beginning of the year, requiring monthly payments of $900. The rent for the first month was paid when the lease was signed. After that, the $900 rent was paid on the last day of each month, to cover the following month. Supplies costing $5,000 were purchased for cash. At the end of the year, $500 of the supplies were still unused. Wages of $33,800 were paid during the year. Also, wages of $500 remained unpaid at year end. Calculate the revenues, expenses, and net income that would be reported on the cash basis. (Enter loss amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Expenses Net Income / (Loss) $Enter a dollar amount. $Enter a dollar amount. $Enter a dollar amount.

Answer rating: 100% (QA)

Solution Cash revenues ... View the full answer