10. If a company has net sales of $500,000 and cost of goods sold of$350,000, th
ID: 2458136 • Letter: 1
Question
10.
If a company has net sales of $500,000 and cost of goods sold of$350,000, the gross profit rate is
A)
70%.
B)
30%.
C)
15%.
D)
100%.
9. 5 pnts Prepare adjusting entries for the followingtransactions. Omit explanations. 1. Depreciation on equipment is $1,040 for the accountingperiod. 2. Interest owed on a loan but not paid or recorded is$175. 3. There was no beginning balance of supplies and purchased $350of office supplies during the period. At the end of the period$70 of supplies were on hand. 4. Prepaid rent had a $1,000 normal balance prior toadjustment. By year end $500 had expired. 5. Accrued salaries at the end of the period amounted to$900.Explanation / Answer
1 deprexpense 1040 accmdepr 1040 2) interestexp. 175 accminterest 175 3) supplies 70 suppliesexp 70 4) rentexpense 500 pre-paidrent 500 5) salaries 900 accruedsalaries 900 :350000/500000=.7(100)=70% ......so A is the answer
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