2 A COUPLE OF ADJUSTING ENTRIES Dec-08 31 If Mercha idise Inventory account has a $50,000 balance, but year end count totaled $46,000. 31 Dprciation on Building amounted to $3,000 this year 3 3 FINANCIAL STATEMENTS They are done at end of month or at end of year ABC Company Adjusted Trial Balance 31-Dec-08. Debit Credit $ 29,000 7,000 4,000 19,000 Cash A-Receivable Merchandise Inventory Buildings Accum.Depreciation- Bld Accounts Payable Unearned Revenue John Do, Capital Johni Doe, Withdrawals Sals.. Sales Discounts Sales Rturns and Allowances cost of Goods Sold S 9,000 1,000 1,000 50,000 5,000 155,000 1,000 2,000 107,000 1,000 11,000 20,000 Delivery Expense Deprciation Expense -Bld Salaries Expense S. 216,000 216,000 3 3 FNANCIAL STATEMENTS -Theraredoneatendofmontrroraten--ean ABC Compan Adjusted Trial Balance 31-Dec-08 DebitCreo s29,000 7,000 4,000 19,000 Cash A-Receivable Merchandise Inveritory Buildings Accui. Depreciation - Bld Accounts Payable Unearned Revenue John Do, Capital John Doe, Withdrawals Sals Sales Discoits Sales Returns and Allowances Cost of Goods Sold Delivery.Expense Deprciation Expense -Bld Salaries Expense- $ 9,000 1,000 1.000 50,000 5,000 155,000 1,000 2,000 107,000 1,000 11,000 20,000 .216,000 216,000 5 in the above. Problm 3: . . . .wiat wras the gross profit (rate)-show work! bhat was th profit margin (rate)-show work! 5A GROSS PROFIT RATE EB PROFIT HARGIN SATE 2 A COUPLE OF ADJLUSTING ENTRIES De-08 31 Merchanidise Inventory account has a $50,000 balance. 31 Dprciation on Building amounted to $3,000 this year. but a year end count totaled $46,000. 3 3 FNANCIAL STATEMENTS. They aredo e atend of nontror tend Ofvear. ABC Company Adjusted Trial Balance 31-Dec-08 Debit Credit S 29,000 7,000 14,000 9,000 Cash A-Receivable Merchandise Inventory Buildings Accum. Depreciation-Bld Accounts Payable Unearned Revenue John Do, Capital 9,000 1.000 1,000 50,000 5,000 John Doe, ithdrawals Sais Sales Discorits Sales Rturns and Allowances cost or Goods Sold deliveriy Expense Deprciation Expense - Bld 155,000 1,000 2,000 107,000 1,000 1,000 Salaries Expnse 20,00000 . 216,000 216,000 5 In the above Problem 3.. . what was the gross profit (rate)-show wrk! b: What wa's the profit margin (rate) - show work! 5A GROSS PROFIT RATE SB PROFIT MARGIN RATE