Question
Grocery reported the following comparative income statements for the years ended November 30, 2025 and 2024: LOADING... (Click the icon to view the comparative income
Grocery reported the following comparative income statements for the years ended
November
30,
2025
and
2024:
LOADING...
(Click
the icon to view the comparative income statements.)
During
2025,
HealthyBite
Grocery discovered that ending
2024
merchandise inventory was overstated by
$3,000.
Read the requirements.
LOADING...
| Healthy Bite Grocery | ||||||
|---|---|---|---|---|---|---|
| Income Statements | ||||||
| Years Ended November 30, 2025 and 2024 | ||||||
| 2025 | 2024 | |||||
| Net Sales Revenue | $138,000 | $125,000 | ||||
| Cost of Goods Sold: | ||||||
| Beginning Merchandise Inventory | $14,000 | $12,600 | ||||
| Plus: Net Cost of Inventory Purchased | 75,000 | 73,000 | ||||
| Cost of Goods Available for Sale | 89,000 | 85,600 | ||||
| Less: Ending Merchandise Inventory | 17,500 | 14,000 | ||||
| Cost of Goods Sold | 71,500 | 71,600 | ||||
| Gross Profit | 66,500 | 53,400 | ||||
| Operating Expenses | 29,000 | 22,000 | ||||
| Net Income | $37,500 | $31,400 |
Requirement 1. Prepare corrected income statements for the two years.
| Healthy Bite Grocery | ||||||
| Income Statements | ||||||
| Years Ended November 30, 2025 and 2024 | ||||||
| 2025 | 2024 | |||||
| Sales Revenue | ||||||
| Cost of Goods Sold: | ||||||
| Beginning Merchandise Inventory | ||||||
| Net Cost of Purchases | ||||||
| Cost of Goods Available for Sale | ||||||
| Less: Ending Merchandise Inventory | ||||||
| Cost of Goods Sold | ||||||
| Gross Profit | ||||||
| Operating Expenses | ||||||
| Net Income |
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Payroll Accounting
Authors: Bernard J Bieg, Judith A Toland
24th Edition
1285437063, 9781285437064
