Use the following information (in random order) from a merchandising company and from a service company....
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Use the following information (in random order) from a merchandising company and from a service company. McNeil Merchandising Company Accumulated depreciation Beginning inventory Ending inventory Expenses Net purchases Net sales Krug Service Company Expenses Revenues Cash Prepaid rent Accounts payable Equipment $ 9,000 30,000 750 700 200 2,800 a. Goods available for sale a. Cost of goods sold Gross profit $ 700 13,000 7,800 2,250 16,700 25,500 a. Compute the goods available for sale, the cost of goods sold and gross profit for the merchandiser. Hint. Not all information may be necessary. b. Compute net income for each company. a. b. Net income for Krug Service Company b. Net income for McNeil Merchandising Company Use the following information (in random order) from a merchandising company and from a service company. McNeil Merchandising Company Accumulated depreciation Beginning inventory Ending inventory Expenses Net purchases Net sales Krug Service Company Expenses Revenues Cash Prepaid rent Accounts payable Equipment $ 9,000 30,000 750 700 200 2,800 a. Goods available for sale a. Cost of goods sold Gross profit $ 700 13,000 7,800 2,250 16,700 25,500 a. Compute the goods available for sale, the cost of goods sold and gross profit for the merchandiser. Hint. Not all information may be necessary. b. Compute net income for each company. a. b. Net income for Krug Service Company b. Net income for McNeil Merchandising Company
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Related Book For
Financial Accounting Fundamentals
ISBN: 978-1259726910
6th edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
Posted Date:
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