Salaries and wages expense 55,000 0,000 3,000 380,000 on hand 21,000 Sales disco

Question

Salaries and wages expense 55,000 0,000 3,000 380,000 on hand 21,000 Sales discounts Cost of goods sold 218,000 Sales returns and allowances Freight-out Instructions (a) Prepare the necessary adjusting entry for inventory (b) Prepare the necessary closing entries. 7,000 Sales revenue E5-9 Presented below is information for Kaila Company for the month of March Cost of goods sold Freight-out Insurance expense Salaries and wages expense 30,000 8,000 13,000 380,000 $215,000 Rent expense 7,000 Sales discounts 6,000 Sales returns and allowances Sales revenue 58,000 Instructions (a) Prepare a multiple-step income statement. (b) Compute the gross profit rate. E5-10 In its income statement for the year ended December 31, 2017, Anhad Compan reported the following condensed data. Operating expenses Cost of goods sold Interest expense Interest revenue Loss on disposal of plant assets $28,000 17,000 2,200,000 $ 725,000 1,289,000 70,000 Net sales Instructious

Explanation / Answer

Multi -Step Income Statement Sales revenue 380,000 less:   sales discount 8,000            Sales return & allowances 13,000 Net sales 359,000 cost of goods sold 215,000 Gross profit 144,000 less: operating expense Freight out 7,000 Insurance expense 6,000 Salaries and wages expense 58,000 Rent expense 30,000 total operating expense 101,000 net operating income 43,000 Gross profit rate = gross profit/net sales 144,000/359000 40.11%

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