Exercise 9-5 (Part Level Submission) Presented below is information related to S

Question

Exercise 9-5 (Part Level Submission) Presented below is information related to Sarasota Enterprises Jan. 31 Feb. 28 Mar. 31 Apr. 30 Inventory at cost Inventory at LCNRV Purchases for the month Sales for the month $18,120 15,120 20,400 34,800 $20,400 18,720 28,800 42,000 $16,800 15,960 31,800 48,000 $18,000 17,400 (a) From the information, prepare (as far as the data permit) monthly income statements in columnar form for February, March, and April. The inventory is to be shown in the statement at cost; the gain or loss due to market fluctuations is to be shown separately (using a valuation account). (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Explanation / Answer

Particulars Feb. 28 March 31 Apr. 30 Sales Revenue $34,800 $42,000 $48,000 COGS   Inventory Beginning $18,000 $18,120 $20,400 Purchases $20,400 $28,800 $31,800 Cost of Goods Available $38,400 $46,920 $52,200 Inventory Ending $18,120 $20,400 $16,800 COGS $20,280 $26,520 $35,400 Gross Profit $14,520 $15,480 $12,600 Gain (Loss) Due to Market ($2,400) $1,320 $840 Net Gross profit $12,120 $16,800 $13,440

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