For each of the following items, calculate the amount of revenue or expense that

Question

For each of the following items, calculate the amount of revenue or expense that should be recognized on the income statement for Pilkey Co. for the year ended December 31, 2010:

(a) Cash collected from customers during the year amounted to $882,000, and accounts receivable increased by $41,200. How much were sales on account for the year ended December 31, 2010?

Revenues earned $

b)Cash payments for income taxes during the year were $237,000, and income taxes payable increased by $35,700. How much was income tax expense?

Expense Incurred $

(c) Cash paid to suppliers during the year amounted to $677,000, accounts payable decreased by $26,400, and inventories decreased by $11,300. How much was cost of goods sold?

Expense Incurred $

(d) The net book value of buildings increased by $163,000. No buildings were sold, and a new building costing $262,000 was purchased during the year. How much was depreciation expense?

Expense Incurred @

Explanation / Answer

(a) Cash collected from customers during the year amounted to $882,000, and accounts receivable increased by $41,200. How much were sales on account for the year ended December 31, 2010? (Answered according to revenue earned total--not just on account)

Revenues earned $ 923200 (882000+41200)

b)Cash payments for income taxes during the year were $237,000, and income taxes payable increased by $35,700. How much was income tax expense?

Expense Incurred $ 272700 (237000+35700)

(c) Cash paid to suppliers during the year amounted to $677,000, accounts payable decreased by $26,400, and inventories decreased by $11,300. How much was cost of goods sold?

Expense Incurred $ 661900 (677000-26400+11300)

(d) The net book value of buildings increased by $163,000. No buildings were sold, and a new building costing $262,000 was purchased during the year. How much was depreciation expense?

Expense Incurred $99000 (163000-262000)

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.