Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Questions 4 through 8 are based on the following fact statement: Complete the following income statement, including cost of goods sold and answer the five

Questions 4 through 8 are based on the following fact statement:
Complete the following income statement, including cost of goods sold and answer the five multiple-choice questions below. Credit is given for your answers to the multiple-choice questions only. For each question, circle the letter that is the correct answer.
Company X
Income Statement
FYE 12/31/2020
COLUMN 1 COLUMN 2 COLUMN 3
NET SALES REVENUE 4._________
EXPENSES:
COST OF GOODS SOLD
Beginning Merchandise Inventory -0-_
Purchases 5.__________
Less: Purchase Returns &
Allowances 10,000
Less:Purchase Discounts 90,000
Net Purchases 2,000,000
Add: Freight In 200,000
Net Cost of Purchases 6.__________
Cost of Goods Available for Sale 2,200,000
Less: Ending Merchandise Inventory 7._________
Cost of Goods Sold 1,700,000
Gross Profit 1,300,000
Operating Expenses
Total Selling Exxpenses 8.__________
Total Administrative Expenses 300,000
Total Operating Expenses 1,000,000
Operating Income 300,000
ACC122
Exam III
Page 3 of 7
4. What is the answer to blank 4, the amount for net sales revenue?
A. 3,000,000
B. 1,700,000
C. 1,300,000
D. 1,000,000
E. None of the above
5. What is the answer to blank 5, the amount for purchases?
A. 1,900,000
B. 2,000,000
C. 2,100,000
D. 2,200,000
E. None of the above
6. What is the answer to blank 6, the amount for the net cost of purchases?
A. 1,900,000
B. 2,000,000
C. 2,100,000
D. 2,200,000
E. None of the above
ACC122
Exam III
Page 4 of 7
7. What is the answer to blank 7, the amount for ending inventory?
A. 500,000
B. 400,000
C. 300,000
D. 200,000
E. None of the above
8. What is the answer to blank 8, the amount for total selling expenses?
A. 1,000,000
B. 800,000
C. 700,000
D. 300,000
E. None of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services A Systematic Approach

Authors: William Messier, Steven Glover, Douglas Prawitt

12th Edition

ISBN: 1264100671, 978-1264100675

More Books

Students also viewed these Accounting questions

Question

Timeline for final evaluation

Answered: 1 week ago

Question

How will it be used?

Answered: 1 week ago