Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 4-21A (Static) Determining cost of goods sold: Periodic system (Appendix) LO 4-9 Tippah Antiques uses the periodic inventory system to account for its

image text in transcribedimage text in transcribedimage text in transcribed

Exercise 4-21A (Static) Determining cost of goods sold: Periodic system (Appendix) LO 4-9 Tippah Antiques uses the periodic inventory system to account for its inventory transactions. The following account titles and balances were drawn from Tippah's records for Year 2: beginning balance in inventory, $42,000; purchases, $128,000; purchase returns and allowances, $12,000; sales, $520,000; sales returns and allowances, $3,900; freight-in, $1,000; and operating expenses, $130,000. A physical count indicated that $26,000 of merchandise was on hand at the end of the accounting period. Required a. Prepare a schedule of cost of goods sold. b. Prepare a multistep income statement. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule of cost of goods sold. TIPPAH ANTIQUES Schedule of Cost of Goods Sold For the Year Ended December 31, Year 2 Beginning inventory Plus: Purchases Plus: Transportation-in $ 25,100 307,000 1,870 Required A Required B Prepare a multistep income statement. TIPPAH ANTIQUES Income Statement. For the Year Ended December 31, Year 2 Net sales revenue $ 720,680 Cost of goods sold 295,770 Gross margin Operating expenses 424,910 51,700 Net income $ 373,210 < Required A Required B > Required A Required B Prepare a schedule of cost of goods sold. TIPPAH ANTIQUES Schedule of Cost of Goods Sold For the Year Ended December 31, Year 2 Beginning inventory Plus: Purchases Plus: Transportation-in Less: Purchase returns and allowances Cost of goods available for sale Less: Ending inventory Cost of goods sold $ 25,100 307,000 1,870 12,000 321,970 25,000 $ 296,970

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles Part 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

6th Canadian edition

1118306783, 978-1118728918, 1118728912, 978-1118306789

More Books

Students also viewed these Accounting questions