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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: BIG TORTY CORPORATION Profit and Loss December 31 Debit Credit Net Sales Cost of Goods Sold Salaries and wages Expense office Expenses Travel Expenses Income Tax Expense Net Profit Totals 5263,000 54,00 13.00 1,600 1). $375,00 19. $375, Required: 1. Prepare a properly formatted multiste income statement that would be used for external reporting purposes Answer is complete but not entirely correct. BIO TOMMY CORPORATION Income Statement For the Year Ended December 31 Net Sales 375.000 Cost of Goods Sold 263.000 Gross Profit 112.000 Expenses Other Operating Expenses Salaries and Wages Expense 54,000 Office Expenses 13.000 Travel Expense 1.000 Loss from Operations 68.000 Income Tax Expense 44.800 Interest Expense 3 Net Income 31.360 W of incorrect for the work you have completed so far. It does not Required Information [The following information applies to the questions displayed below) The transactions listed below are typical of those involving New Books Inc and Readers' Corner New Books is a wholesale merchandiser and Readers' Comer is a retail merchandiser Assume a ales of merchandise from New Books to Readers' Corner are made with terms n 30, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended August 31 a New Books sold merchandise to Readers Corner at a selling price of $555.000 The merchandise had cost New Books $417,000 b. Two days later, Readers' Comer complained to New Books that some of the merchandise differed from what Readers Corner had ordered New Books agreed to give an allowance of $10.500 to Readers Corner, Readers Corner also returned some books, which had cost New Books $2.100 and had been sold to Readers Comer for $3.600 c. Just three days later, Readers' Comer paid New Books, which settled al amounts owed 2. Prepare the journal entries to record New Books transactions of no entry is required for a transaction event, select "No Journal Entry Required in the first account neid.) Answer is not complete General De Transaction 11 1 0 05.000 A Receivable Sales Reve 3.000 012) 417.000 Cost of Good Inventory 417.000 OOOOO 1) 0.000 3.600 Allowance for Double Account Inoy. Estimated Reus Account Recevable 141 O 2.100 Inventory Couto podstid 2.100 340 000 5 0 53000 ADD Race
