Preparation of journal entries and an income statement for a manufacturing firm. Famous Horse Garment Factory manufactures
Question:
Preparation of journal entries and an income statement for a manufacturing firm. Famous Horse Garment Factory manufactures jeans for Guess and Jordache in Hong Kong. It showed the following amounts in Hong Kong dollars in its inventory accounts on January 1:
(6) The cost of goods completed and transferred to the finished goods storeroom totaled $468,000.
(7) Sales on account during January totaled $650,000.
(8) A physical inventory taken on January 31 revealed a finished goods inventory of $140,000.
a. Present journal entries to record the transactions and events that occurred during January.
b. Prepare an income statement for Famous Horse Garment Factory for January.
Step by Step Answer:
Financial Accounting An Introduction To Concepts Methods And Uses
ISBN: 9780030259623
9th Edition
Authors: Clyde P. Stickney, Roman L. Weil