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During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence of events was as follows: January 6 Purchased goods

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During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence of events was as follows: January 6 Purchased goods for $500 from Green with terms 2/12,n/45. January 6 Purchased goods from Munoz for $950 with terms 2/12,n/12,45, January 14 Paid Green in full. February 2 Paid Munoz in full. February 28 Purchased goods for $700 from Reynolds with terms n/45. Required: Assume that Axe uses a perpetual inventory system, the company had no inventory on hand at the beginning of January, and no sales were made during January and February. Calculate the cost of inventory as of February 28 . A company separately sells home security equipment and 12 months of system monitoring service for $260 and $520, respectively. The company sells an equipment/monitoring bundle on January 1 for a total price of $720. The monitoring service begins immediately after the equipment is delivered and installed on January 1. Required: 1. Determine the dollars of revenue that should be allocated to the equipment for each bundled sale. 2. Determine the dollars of revenue that should be allocated to the service for each bundled sale. 3. Determine the dollars of Sales Revenue and Service Revenue from the January 1 bundled sale that should be reported in the income statement for the period January 131. (For all requirements, do not round intermediate calculations.) Big Tommy Corporation is a local grocery store organized seven years ago as a corporation. The bookkeeper prepared the following statement at year-end (assume that all amounts are correct, but note the incorrect format): Required: Prepare a properly formatted multistep income statement that would be used for external reporting purposes. Required information [The following information applies to the questions displayed below.] Big Tommy Corporation is a local grocery store organized seven years ago as a corporation. The bookkeeper prepared the following statement at year-end (assume that all amounts are correct, but note the incorrect format): 2. Compute the gross profit percentage. (Round your answer to 1 decimal place.)

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