5 Record the following transactions and make necessary adjustments for July 31st. (12 marks) 01-Jul-21 The organization purchased a one year insurance policy for $2,850

01-Jul-21

The organization purchased office furniture for $14,760. Expected useful life is 6 years with salavage value of $1,800

01-Jul-21 The organization received a consulting fee of $6,000 for the month of July and August. 6 Prepare classified Income statement and compute the ratios based on the information provided below (22 marks)

Beginning Inventory , January 1 $20,000

Ending Inventory , December 31 $22,000

Sales Returns and Allowance $1,000

Store Supplies Expense $3,000

Sales Salaries Expense $30,000

Sales $218,000

Purchases $50,000

Rent Expense $37,000

Sales Commissions Expense $4,200

Freight In $1,500

Purchase Discounts $400

Depriciation Expense - Office Equipment $3,000

Depriciation Expense - Store Equipment $6,000

Utilities Expense $8,000

Office Salaries Expense $25,000

Interest Expense $400

Interest Income $1,200

Current Assets $276,000

Current liabilities $262,000

Accounts Receivable, begining $143,000

Accounts Receivable, ending $126,000

Compute in classified income statement

Peerless Training Institute Management Accounting

Date : September 30, 2021

1 Net Sales

2 Cost of Goods sold

3 Gross Profit

4 Operating Expenses

5 Net Income from Operations

6 Other income, net

7 Net Income for the year

Compute ratios 1 Gross profit Percentage

2 Inventory Turnover

3 Working Capital

4 Current Ratio

5 Accounts Receivable Turnover