Problem 5-16A
Required
1. Show the computation of Boggio Security's net sales, cost of goods sold, and gross margin
for the year ended November 30, 2017.
2. Len Boggio, the proprietor of Boggio Security, strives to earn a gross margin percentage
of 25 percent. Did he achieve this goal?
3. Did the rate of inventory turnover reach the industry average of 3.8 times per year?
& Accounting Book Horngren's.pdf - Adobe Acrobat Reader DC File Edit View Window Help Home Tools Accounting Book H... x A Sign In T 326 / 756 Share 308 Part 1 The Basic Structure of Accounting Lo *Problem 5-14A Items from the accounts of Marchand Distributors at May 31, 2017, follow, listed in alphabeti- Preparing a single-step income cal order. Marchand Distributors uses the periodic inventory system. For simplicity, all oper- statement and a classified bal- ating expenses are summarized in the General Expenses and the Selling Expenses account. ance sheet under the periodic inventory system Accounts Payable ...... $ 71,000 Inventory May 31, 2016..... $ 151,800 AA Accounts Receivable ............". 107,500 Notes Payable . Net income, $259,600 Accumulated Amortization- Long-Term.. 114,800 Equipment..... 96,900 Purchases...... 1,102,200 C. Marchand, Capital... 167,800 Salaries Payable... 7,200 C. Marchand, Withdrawals.... 66,900 Sales Discounts.. 26,500 Cash.. ... 19,900 Sales Returns and Equipment.... 340,800 Allowances.. 45,900 O General Expenses 206,800 Sales Revenue .. 1,991,500 Interest Expense .... 9,200 Selling Expenses .. 357,200 Interest Payable ... 2,800 Supplies ." 33,100 Interest Revenue.. 600 Unearned Sales Revenue.... 15,200 Required 1. Prepare the business's single-step income statement for the year ended May 31, 2017. A physical count of inventory on May 31, 2017, valued it at $167,100. 2. Prepare Marchand Distributors' statement of owner's equity at May 31, 2017. 3. Prepare Marchand Distributors' classified balance sheet in report format at May 31, 2017. *Problem 5-15A 1. Use the data in Problem 5-14A to prepare Marchand Distributors' multi-step income Preparing a multi-step income statement for the year ended May 31, 2017. statement and calculating gross 2. Corry Marchand, owner of the company, strives to earn a gross margin of at least 50 per- margin percentage under the cent and a net income of 20 percent (Net income percentage = Net income + Net sales periodic inventory system revenue). Did Marchand Distributors achieve these goals? Show your calculations. . Net income, $259,600 *Problem 5-16A Selected accounts from the accounting records of Boggio Security had the balances shown Computing cost of goods sold below at November 30, 2017. Boggio Security uses the periodic inventory system. and gross margin in a periodic inventory system, evaluating the Purchases.... $ 160,000 business Selling Expenses.. 10,000 Furniture and Fixtures.. 40,000 . Gross margin, $43,600 Purchase Returns and Allowand 1,000 Salaries Payable.. 1,500 Sales Revenue .... 205,000 Sales Returns and Allowances 1,900 Inventory: November 30, 2016 ..... 36,000 November 30, 2017. 37,000 Accounts Payable.. 9,000 Accounts Receivable.... 15,000 Cash..... 3,500 Freight-in .. 1,400 Accumulated Amortization-Furniture and Fixtures.. 16,000 Purchase Discounts... 1,500 Sales Discounts ... 1,600 General Expenses ... 22,000 Amortization Expense- -Furniture and Fixtures .. 4,000 L. Boggio, Capital..... 81,900 L. Boggio, Withdrawals.. 20,500 "These Problems cover Chapter 5 Appendix A topics. Chapter 5 Merchandising Operations 309 Required 1. Show the computation of Boggio Security's net sales, cost of goods sold, and gross mar- gin for the year ended November 30, 2017. 2. Len Boggio, the proprietor of Boggio Security, strives to earn a gross margin percentage of 25 percent. Did he achieve this goal? 3. Did the rate of inventory turnover reach the industry average of 3.8 times per year? *Problem 5-17A Journalizing, posting to Mumbai Sales Company engaged in the following transactions during September 2017, the T-accounts, year-end adjusting first month of the company's fiscal year. Assume the company had no inventory on hand preparing financial statements prior to September 3. Mumbai Sales Company has a periodic inventory system. using the periodic inventor 8.50 x 11.00 in O 9 W ON3 82 02:11 PM 19-05-2019
