Please provide the necessary entries and calculations.
2020 $ 47,000 116,000 64,000 9,000 1,489,000 89,000 130,000 21,000 Cash Short-term (trading) investments Accounts receivable Inventory Prepaid expenses Total assets.. Accounts payable Salaries payable.......... Interest payable Net sales, all on credit .... Cost of goods sold Operating expenses.. Operating income...... Gain (loss) on sale of equipment... Interest expense... Income tax expense Net income ...... Common shares (no preferred) Retained earnings.......... 2021 $ 21,000 28,000 102,000 86,000 11,000 1,503,000 92,000 100,500 12,500 877,000 576,000 142,000 159,000 6,000 36,000 20,000 109,000 420,000 153,000 NOTE: Operating expenses include $17,000 of depreciation expense in 2021. In order to test one of the new sauces PP signed a contract with Market PLUS, a grocery store chain in Toronto. PP delivered 8,000 bottles of sauce with a selling price of $4 each and a cost of $2.80, to Market PLUS on December 12, 2021. Payment is due 60 days after shipment. Market PLUS can return a maximum of 30% of the order at their own expense. Market PLUS is an existing customer of PP and has an excellent credit rating. Past experience with Market PLUS indicates that the normal return rate is 12% although PP hopes that the rate of return will only be 8% since market tests indicated the sauce was rated exceptionally high during taste tests. The bookkeeper recorded Sales Revenue and the related Cost of Goods Sold for the full amount of the invoice. (approx. 10 marks) 2020 $ 47,000 116,000 64,000 9,000 1,489,000 89,000 130,000 21,000 Cash Short-term (trading) investments Accounts receivable Inventory Prepaid expenses Total assets.. Accounts payable Salaries payable.......... Interest payable Net sales, all on credit .... Cost of goods sold Operating expenses.. Operating income...... Gain (loss) on sale of equipment... Interest expense... Income tax expense Net income ...... Common shares (no preferred) Retained earnings.......... 2021 $ 21,000 28,000 102,000 86,000 11,000 1,503,000 92,000 100,500 12,500 877,000 576,000 142,000 159,000 6,000 36,000 20,000 109,000 420,000 153,000 NOTE: Operating expenses include $17,000 of depreciation expense in 2021. In order to test one of the new sauces PP signed a contract with Market PLUS, a grocery store chain in Toronto. PP delivered 8,000 bottles of sauce with a selling price of $4 each and a cost of $2.80, to Market PLUS on December 12, 2021. Payment is due 60 days after shipment. Market PLUS can return a maximum of 30% of the order at their own expense. Market PLUS is an existing customer of PP and has an excellent credit rating. Past experience with Market PLUS indicates that the normal return rate is 12% although PP hopes that the rate of return will only be 8% since market tests indicated the sauce was rated exceptionally high during taste tests. The bookkeeper recorded Sales Revenue and the related Cost of Goods Sold for the full amount of the invoice. (approx. 10 marks)
