Chart of Accounts Monet Paints Co. is a newly organized retail business with a list of...

 
 
 
 

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Chart of Accounts Monet Paints Co. is a newly organized retail business with a list of accounts arranged in alphabetical order, as follows: Assign account numbers and specify whether each account would appear on the balance sheet or income statement. Each account number is three digits: the first digit is to indicate the major classification (1 for assets, and so on); the second digit is to indicate the subclassification (11 for current assets, and so on); and the third digit is to identify the specific account (110 for Cash, 112 for Accounts Receivable, 114 for Inventory, 115 for Estimated Returns Inventory, and so on). Note: If an account would not appear on either the Balance Sheet or the Income Statement, select "N/A". Account Financial Statement Major Classification Possible Account Number Accounts Payable Accounts Receivable Accumulated Depreciation-Office Equipment Accumulated Depreciation-Store Equipment Advertising Expense Cash Common Stock Cost of Goods Sold Customer Refunds Payable Delivery Expense Depreciation Expense-Office Equipment Depreciation Expense-Store Equipment Dividends Estimated Returns Inventory Insurance Expense Interest Expense Interest Revenue Inventory Land Miscellaneous Administrative Expense Miscellaneous Selling Expense Determining Gross Profit During the current year, merchandise is sold for $979,000. The cost of the goods sold is $704,880. a. What is the amount of the gross profit? b. Compute the gross profit percentage (gross profit divided by sales). % c. Will the income statement always report a operating income? Chart of Accounts Monet Paints Co. is a newly organized retail business with a list of accounts arranged in alphabetical order, as follows: Assign account numbers and specify whether each account would appear on the balance sheet or income statement. Each account number is three digits: the first digit is to indicate the major classification (1 for assets, and so on); the second digit is to indicate the subclassification (11 for current assets, and so on); and the third digit is to identify the specific account (110 for Cash, 112 for Accounts Receivable, 114 for Inventory, 115 for Estimated Returns Inventory, and so on). Note: If an account would not appear on either the Balance Sheet or the Income Statement, select "N/A". Account Financial Statement Major Classification Possible Account Number Accounts Payable Accounts Receivable Accumulated Depreciation-Office Equipment Accumulated Depreciation-Store Equipment Advertising Expense Cash Common Stock Cost of Goods Sold Customer Refunds Payable Delivery Expense Depreciation Expense-Office Equipment Depreciation Expense-Store Equipment Dividends Estimated Returns Inventory Insurance Expense Interest Expense Interest Revenue Inventory Land Miscellaneous Administrative Expense Miscellaneous Selling Expense Determining Gross Profit During the current year, merchandise is sold for $979,000. The cost of the goods sold is $704,880. a. What is the amount of the gross profit? b. Compute the gross profit percentage (gross profit divided by sales). % c. Will the income statement always report a operating income?

Answer rating: 100% (QA)

Answer a Gross profit 979000 70... View the full answer