Question 4: Alpha Company provided the following data concerning its income statement: sales, $980,000; purchases, $389,000; beginning inventory, $220,000; ending inventory, $242,000; operating expenses, $111,000; freight-in, $5,000; sales discounts, $17,000; purchases discounts, $15,000; sales returns & allowances, $122,000; and purchases returns & allowances, $47,000.The data are complete & provide the basis for preparation of an income statement.How much is net income?

Question 5: Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the gross method is used.

> Alpha Company sold on account merchandise costing $3,000 to Bravo Company on May 2, 2016. Selling price was $4,500. Freight charges related to this transaction of $200 were paid by Alpha Company.

> Bravo Company returned, to Alpha Company, merchandise with an original cost to Alpha of $300 on May 3, 2016. Merchandise was sold to Bravo for $450

Use this information to create Alpha Company'sGeneral Journal entries (without explanation) for May 2 & May 3 entries. If no entry is required then write "No Entry Required."

Question 6: Alpha Company replenished a $500 petty cash fund.The petty cash box contained vouchers of $87 for postage, $173 for supplies, $58 for gasoline, and cash on hand of $180.The journal entry to reflect replenishment would include a:

Question 6 options:

debit to Cash Short for $2

credit to Cash or $180

credit to Cash for $318

credit to Petty Cash for $2