XYZ Products, Selected Accounts from the Adjusted Trial Balance dated December 31, 2018 (for its year ended December 31, 2018).

Sales                              $385,000

Sales returns                     12,000

Inventory                          32,692

Purchase discounts            2,000

Purchase returns                5,000

Transportation-in               2,346

Josh Mayer, capital          16,270 CR

Sales discounts                  7,400

Depreciation expense      10,000

Purchase allowances         4,000

Sales allowances               3,000

Purchases                      218,000

Property tax expense      14,625

Store supplies expense     3,814

Wages expense               66,601

REQUIRED:

The inventory on hand at December 31, 2018 was $24,388.

Part A.   Using the PERIODIC SYSTEM, prepare ONLY the part of a classified, multiple-step Income Statement that includes the SALES, COST OF GOOD SOLD, and GROSS PROFIT sections (12 marks)

Part B.   Calculate the gross margin % (also known as the gross profit %) (2 marks).

Part C.   Prepare the first closing entry under the PERIODIC SYSTEM that closes the temporary accounts with credit balances and sets up ending inventory (5 marks) - NEED  A DATE, but NO EXPLANATION 

REQUIRED

Part D. Prepare the second closing entry under the PERIODIC SYSTEM that closes the temporary accounts with debit balances and removes beginning inventory (7 marks) - NEED  A DATE, but NO EXPLANATION REQUIRED

Part E. What is the net income for the year?