QS 4-3 Merchandise accounts and computations LO C2 Kleiner Merchandising Company Accumulated depreciation $ 700 Beginning inventory 5,500 Ending inventory 1,900 Expenses 1,500 Net purchases 4,700 Net sales 10,500 Krug Service Company Expenses $ 7,500 Revenues 15,000 Cash 500 Prepaid rent 600 Accounts payable 200 Equipment 1,300 Required: a. Compute the goods available for sale, and the cost of goods sold and gross profit for the merchandiser. Hint: Not all information may be necessary. b. Compute net income for each company. a. Goods available for sale Cost of goods sold Gross profit Net income for Krug Service Company Net income for Kleiner Merchandising Company b. Exercise 4-1 Computing revenues, expenses, and income LO C1, C2 Fill in the blanks in the following separate income statements a through e. (Amounts to be deducted should be indicated by a minus sign.) b C d e Sales $ 62,000 $ 43,500 $ 46,000 $ 25,600 8,000 4,560 38,000 6,600 Cost of goods sold Merchandise inventory (beginning) Total cost of merchandise purchases Merchandise inventory (ending) Cost of goods sold Gross profit Expenses Net income (loss) 34,050 17,050 7,500 8,000 32,000 (3,000) (9,000) (6,600) 16,000 3,750 45,600 10,650 12,150 3,600 $ 16,850 $ (8,400) $ 42,000 7,000 10,000 6,000