Problem 5-3A

Problem 5-3A Singh Distributing Company uses the perpetual inventory system and engaged in the following transactions during May of the current year: May 3 Purchased office supplies for cash, $22,000. 7 Purchased inventory on credit terms of 3/10, net eom, $76,000. 8 Returned 25 percent of the inventory purchased on May 7. It was not the inventory ordered. Accounts Receivable107,500 Interest Revenu. Accumulated Amortization-- Equipment. 96,900 Notes Payable, Long-Term..114,800 C. Marchand, Capital.. C. Marchand, Ca ita. 167800 Salaries Payale C. Marchand, Withdrawals....66,900 Sales Discounts26,500 9,900 Sales Returns and Cost of Goods Equipment General Expens6,800 Selling Expenses. Interest Expense 45,900 ...1,991,500 ...33,100 Sold.a.. 1,086,900 Allowance. 40,800 Sales Reven.u.1 9,200 Supplies. Required 1. Prepare the business's single-step income statement for the year ended May 31, 2017. 2. Prepare the statement of owner's equity for the year ended May 31, 2017 3. Prepare Marchand Distributors' classified balance sheet in report format at May 31, 2017. Problem 5-7A 1. Use the data in Problem 5-6A to prepare Marchand Distributors' multi-step income Preparing statement statement for the year ended May 31, 2017 2. Corry Marchand, owner of the company, strives to earn a gross margin of at least Net income +Net 50 percent and a net income of 20 percent (Net income percentage sales revenue). Did Marchand Distributors achieve these goals? Show your calculations. 6 margin pe perpetual 1. Net inca Problem 5-8A The adjusted trial balance of Propp Products at November 30, 2017, is shown on the next page. Propp Products uses the perpetual inventory system. Required Making clo ing gross m inventory t perpetual ir 1. Journalize Propp Products' closing entries. 2. Compute the gross margin perce ntage and the rate of inventory turnover for 2017, Inventory on hand one year ago was $10,700. For 2016, Propp Products' gross m 2. Gross ma 2017, 38.4 argin t and inventory turnover was 4.9 times during the year. Does the two-year trend in these ratios suggest improvement or deterioration in profitability? Chapter 5 Merchandising O