$6.$ A merchandising business has the following financial data for the month of January:

$$15,000$ Merchandise inventory balance on January $1$

$$50,000$ Purchases

$$3,000$ Purchase discounts

$$2,000$ Purchase returns & allowances

$$1,000$ Incoming freight costs

$$10,000$ Merchandise inventory balance on January $31$

$$65,000$ Sales revenue

$$1,500$ Sales returns and allowances

$$5,000$ Operating expenses

A$.$ Determine cost of goods sold for January. Be sure to show your work.

B$.$ Determine gross profit for January. Be sure to show your work.

$7.$ A service business has the following financial data at the end of January:

$$10,000$ Cash $$52,000$ John smith, capital$-$January $1$

$$25,000$ Accounts receivable $??$ John smith, capital$-$January $31$

$$15,000$ Prepaid rent $$10,000$ John smith, drawings

$$20,000$ Land $$5,000$ Net income

$$42,000$ Building $$50,000$ Service revenue

$$20,000$ Accumulated depreciation $$8,000$ Consulting revenue

$??$ Accounts payable $$15,000$ Rent expense

$$20,000$ Wages payable $$20,000$ Wage expense

$$5,000$ Depreciation expense

$??$ Insurance expense

A$.$ Using the basic math equation for an income statement, determine insurance expense for January

$($you do NOT need to prepare a formal income statement$).$ Be sure to show your work.

B$.$ Using the basic math equation for a statement of owner's equity, determine John smith, capital at

January $31($you do NOT need to prepare a formal statement of owner's equity$).$ Be sure to show

your work.

C$.$ Using the basic math equation for a balance sheet, determine accounts payable at January $31($you

do NOT need to prepare a formal balance sheet$).$ Be sure to show your work.