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 Pelkey Co. for the year ended December 31, 2016 Required a. Cash collected from customers during the year amounted to $854,000, and accounts receivable increased by $48,300. How much were sales on account for the year ended December 31, 2016? Revenues s 902,300 earned b. Cash payments for income taxes during the year were $169,000, and income taxes payable increased by $44,100. How much was income tax expense? Expense incurred 213,100 c. Cash paid to suppliers during the year amounted to $759,000, accounts payable decreased by $36,100, and inventories decreased by $16,100. How much was cost of 32%) 320 CPU?? Expense779,000 incurred d. The net book value of buildings increased by $114,000. No buildings were sold, and a new building costing $263,000 was purchased during the year. How much was depreciation expense? Expense incurred S 149,000

Explanation / Answer

a) Revenue earned = 902300

b) Expense incurred = 213100

c) Cost of goods sold = Cash paid to supplier-account payable decrease+Inventory decrease

= 759000-36100+16100

Expense incurred = 739000

d) Expense incurred = 149000

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