You have been provided with the following selected accounts for Feisty Ltd. for the year ended April

Question:

You have been provided with the following selected accounts for Feisty Ltd. for the year ended April 30, 2018:

You have been provided with the following selected accounts for

Feisty conducted a physical inventory count on April 30, 2018. Inventory on hand at that date was determined to be $700,000.
Instructions
(a) Prepare a partial multiple-step income statement for the year ended April 30, 2018, through to gross profit.
(b) Prepare the period-end adjusting journal entry to update the Cost of Goods Sold and Merchandise Inventory accounts.
(c) Calculate the gross profit margin. If the industry average gross profit margin is 30%, how does Feisty's gross profit margin compare?

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Related Book For  book-img-for-question

Financial Accounting Tools for Business Decision Making

ISBN: 978-1119368458

7th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

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