Section C: Simulation. 14. Big Oak Lumber is a lumber yard on Angel Island. Some

Question

Section C: Simulation. 14. Big Oak Lumber is a lumber yard on Angel Island. Some of Bi during the current year are as follows: g Oak's transactions April 15. Sold lumber on account to Hard Hat Construction S19,.700 3oo The inventory subsidiary ledger shows the cost of this merchandise was $10,300. April 19. Purchased lumber on account from LHP Company, $3,700. May 10. Collected in cash the $19,700 account receivable from Hard Hat Construction May 19. Paid the $3,700 owed to LHP Company December 3 1. Big Oak's personnel counted the inventory of $116,500 and a cost of goods sold of $721,000. a Prepare journal entries to record these transactions (The company uses a perpetual inventory system). Prepare a partial income statement showing the company's gross profit for the year (Net Sales for the year amount to $1,422,000). b.

Explanation / Answer

Apr-15 Accounts receivable 19700              Sales revenue 19700 Cost of goods sold 10300             Merchandise inventory 10300 Apr-19 Merchandise inventory 3700             Accounts payable 3700 May-10 Cash 19700            Accounts receivable 19700 May-19 Accounts payable 3700             Cash 3700 Dec-31 No entry b Income statement Sales revenue 1422000 Less Cost of goods sold 721000 Gross profit 701000

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

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