240 5 Accounting for Merchandising Operations BRIEF EXERCISES ios denermining cost of emsds Lo 1) the missing Cost of Goods Ending Cost of Iaventory Purchases Available for Sale Inventory (b) $50000 Goods Sold $100,000 $115,000 $160,000 $110,000 $35,000 Comypuse missing acsn BES-2 Presented below are the desermimig income in Gates Company's income statement Determine the missing amounts Cost of a0 11 Sales Revenue Goods Sold Profit Income $10,800 $29,500 Expenses (a) $ 75,000 (b) $108,000 000 $83,900 530,000 $79,600 $39,500 BES-3 Radomir Company buys merchandise on account from Lemke Company. The sell- nvetory aouries. L0 2, 3) ing peice of the goods is $780, and the cost of the goods is $470. Both compaines petual inventory systems. Journalize the transaction on on the books of both companies Jormalice sales oansactions BES-4 Prepare the yournal entries to record the following 4o3) transactions on Kwang Companys wang Company sold $900,000 of merchandise to Sensat Company, Company returned $90,000 of the merchandise purchased on books using a perpetual inventory system (a) On March 2, K terms 2/10, n/30. The cost of the merchandise sold was $620,000 (b) On March 6, Sensat March 2. The cost of the returned merchandise was $62,000. (c) On March 12, Kwang Company recelved the balance due from Sensat Company urmalioe purchase BES-5 From the information in BE5-4, prepare the journal entries to recc actions on Sensat Company's books under a perpetual inventory system pare adjusting entry forBES-6 At year end, the perpetual inventory records of Litwin Company showed merchan- inventory of $98,000. The company determined, however, that its actual inventory on dise hand was $95,700. Record the necessary adjusting entry are closing entries forB nds. BES-7 Hudson Company has the following account balances: Sales Revenue $195,000, Sales Discounts $2,000, Cost of Goods Sold $117,000, and Inventory $40,000. Prepare the entries to record the closing of these items to Income Summary BES-8 Arndt Company provides the following information for the month ended October 31, 2017; sales on credit $280,000, cash sales $100,000, sales discounts $5,000, and sales returns and allowances $11,000. Prepare the sales section of the income statement based on this information. e sales section of presentation inBES Explain where each of the following items would appear on (1) a multiple- step and single-step atements step income statement, and on (2) a single-step income statement: (a) gain on sale of equipment, (b) interest expense, (c) casualty loss from vandalism, and (d) cost of goods sold et sales, gross me from and gross profi ing expenses $110,000. Compute the following: (a) net sales, (b) gross profit, (c) income BES-10 Assume Kader Company has the following reported amounts: Sales revenue $510,000, Sales returns and allowances $15,000, Cost of goods sold $330,000, and Operat- from operations, and (d) gross profit rate. (Round to one decimal place.)