On July 31, 2012, the balances of the accounts appearing in the ledger of Sagebrush Company...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On July 31, 2012, the balances of the accounts appearing in the ledger of Sagebrush Company are as follows: $ 18,300 $ 12,000 Cash Sales Returns and Allowances Accounts Receivable 72,000 Sales Discounts Purchases 8,000 Merchandise Inventory. August 1, 2011 Office Supplies Prepaid Insurance Land 700,000 90,000 Purchases Returns and Allowances 6,000 3,000 Purchases Discounts 4,000 4,500 Freight In 30,000 300,000 Sales Salaries Expense 300,000 Store Equipment Accumulated Depreciation- Advertising Expense Delivery Expense Depreciation Expense- Store Equipment Miscellaneous Selling Expense Office Salaries Expense 270,000 55,000 9,000 Store Equipment Office Equipment 55,900 78,500 6,000 Accumulated Depreciation- Office Equipment 10,000 16,000 27,800 150,000 Accounts Payable Rent Expense 30,000 3,000 8,300 Salaries Payable Insurance Expense Office Supplies Expense 3,000 Unearned Rent 2,000 50,000 80,000 Depreciation Expense- Office Equipment Miscellaneous Administrative Expense Notes Payable Capital Stock Retained Earnings 1,500 275,300 3,500 Dividends 35,000 Rent Revenue 7,000 Sales 1,660,000 Interest Expense 2,000 Instructions 1. Does Sagebrush Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Sagebrush Company for the year ended July 31, 2012. The merchandise inventory as of July 31, 2012, was $80,000. 3. Prepare the closing entries for Sagebrush Company as of July 31, 2012. 4. What would be the net income if the perpetual inventory system had been used? On July 31, 2012, the balances of the accounts appearing in the ledger of Sagebrush Company are as follows: $ 18,300 $ 12,000 Cash Sales Returns and Allowances Accounts Receivable 72,000 Sales Discounts Purchases 8,000 Merchandise Inventory. August 1, 2011 Office Supplies Prepaid Insurance Land 700,000 90,000 Purchases Returns and Allowances 6,000 3,000 Purchases Discounts 4,000 4,500 Freight In 30,000 300,000 Sales Salaries Expense 300,000 Store Equipment Accumulated Depreciation- Advertising Expense Delivery Expense Depreciation Expense- Store Equipment Miscellaneous Selling Expense Office Salaries Expense 270,000 55,000 9,000 Store Equipment Office Equipment 55,900 78,500 6,000 Accumulated Depreciation- Office Equipment 10,000 16,000 27,800 150,000 Accounts Payable Rent Expense 30,000 3,000 8,300 Salaries Payable Insurance Expense Office Supplies Expense 3,000 Unearned Rent 2,000 50,000 80,000 Depreciation Expense- Office Equipment Miscellaneous Administrative Expense Notes Payable Capital Stock Retained Earnings 1,500 275,300 3,500 Dividends 35,000 Rent Revenue 7,000 Sales 1,660,000 Interest Expense 2,000 Instructions 1. Does Sagebrush Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Sagebrush Company for the year ended July 31, 2012. The merchandise inventory as of July 31, 2012, was $80,000. 3. Prepare the closing entries for Sagebrush Company as of July 31, 2012. 4. What would be the net income if the perpetual inventory system had been used?
Expert Answer:
Answer rating: 100% (QA)
Answer 1 Periodic inventory system Wyman Company uses a periodic inventory system because it maintains accounts for purchases purchases returns and al... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Relationship building is very important to marketers. Explain how these relationships are built and who are the people involved in this process. Please type your assignment as follows: o Font Size...
-
Suppose linear interpolation is used to approximate the function f(x) = 2 sin (2 z) over the interval 0
-
On December 31, 2012, the balances of the accounts appearing in the ledger of Warm Place Furnishings Company, a furniture wholesaler, are as follows: a. Prepare a multiple-step income statement for...
-
Is a flat-rate or flat-fee system more efficient for pricing scarce water? Why?
-
(a) Compare the bond enthalpies (Table 8.4) of the carbon-carbon single, double, and triple bonds to deduce an average -bond contribution to the enthalpy. What fraction of a single bond does this...
-
For the production of 10,000 Electric Automatic Irons the following are the budgeted expenses. Classify the expenses. Particulars Direct materials Direct labour Variable overhead Fixed overhead...
-
Analyze the tube-flow reactor data in Table B. 6 using all possible regressions. Evaluate the subset models using the \(R_{p}^{2}, C_{p}\), and \(M S_{\text {Res }}\) criteria. Justify your choice of...
-
Bracy Company acquired a new piece of construction equipment on January 1, 2011, at a cost of $100,000. The equipment was expected to have a useful life of 10 years and a residual value of $20,000...
-
1.1 A network protocol can be defined as an established set of rules that determine how data is transmitted between different devices in the same network. Discuss the two principal functions of a...
-
Spotlight Ltd has issued share capital of 60,000----8% redeemable cumulative preference shares of ~ 20 each and 4,00,000 equity shares of ~ 10 each. The preference shares are redeemable at a premium...
-
E6A-26 Comparing ending merchandise inventory, cost of goods sold, and gross profit using the periodic inventory system-FIFO, LIFO, and weighted-average methods Learning Objective 7 Appendix 6A O 2....
-
The balance sheet for McCormick Co. is as follows: Assets Liabilities and Equity Net Fixed Assets = $400,000 Long-term Liabilities = $150,000 Current Assets = $250,000 Current Liabilities = $100,000...
-
XYZ company's $2.00 per share dividend paid at the end of the previous year is expected to grow at 5% constant rate, what is the current value of the share of stock? If the stock is currently selling...
-
How much arbitrage profit can you make before transaction costs based on the exchange rate quotations of SC$/$ = C$1.2500/$, S$/ = $1.5000/, and S/C$ = 0.5100/C$? Assume that you start with...
-
Given that forward contracts have high default risk, list three main reasons any rational trader might prefer to trade a forward contract rather thanan identical future contract of same maturity. [3...
-
The strategic alternatives presented by MMI in December 2006 essentially offer two choices. The first option is to adopt greater leverage either directly in BCO or through a leveraged buyout. The...
-
Problem 2 (7 pts) Two claimants are fighting in court over an asset that is worth $20,000. Assume that the likelihood of winning the case depends only on the number of hours of legal services the...
-
Subtract the polynomials. (-x+x-5) - (x-x + 5)
-
Vista Supply Company received a 30-day, 4% Note for $90,000, dated September 8 from a customer on account. a. Determine the due date of the note. b. Determine the maturity value of the note. c....
-
On the firs day of the fiscal year, a company issues $100,000, 8%, six-year installment notes that have annual payments of $21,632. The first note payment consists of $8,000 of interest and $13,632...
-
Gloria Seuss was discussing summer employment with Ella Kitt, president of Hotel California Construction Service: Ella: Im glad that youre thinking about joining us for the summer. We could certainly...
-
Steam at \(1,000 \mathrm{kPa}\) and \(300^{\circ} \mathrm{C}\) enters an engine and expands to \(20 \mathrm{kPa}\). If the exhaust steam has a dryness fraction of 0.9 , make calculations for the drop...
-
Combined separating and throttling calorimeter is used to find out dryness fraction of steam, following readings were taken: Main pressure \(=12\) bar abs. Mass of water collected in separating...
-
Determine the quality of steam for the following cases: (i) \(P=10\) bar, \(v=0.180 \mathrm{~m}^{3} / \mathrm{k}\) (ii) \(P=10\) bar, \(t=200^{\circ} \mathrm{C}\) (iii) \(P=25 \mathrm{bar}, h=2,750...
Study smarter with the SolutionInn App