Spring 2022 - BUS2101 - Chapter 4 Homework Due Manch 28 Questions 1. 2. 3. 4. 5 should be done in color Homework should always be hand-written (do not type). You are encouraged to use journal paper for journal entries (Questions 3. 4. 5. & 6) You are encouraged to use regular paper for financial statements and other questions Questions 1, 2, & 7). Question 1) Presented below is information for A. Patterson Co. for the month of January 2022. $ 64,000 Sales discount $ 30,000 Rent revenue 552,000 Utilities expense 44,000 Sales return and allowances 65,000 Sales revenue 198,000 Cost of goods sold 442,000 Freight-out 10,000 Insurance expense 12,000 Salaries expense 33.000 Instructions (in color): A. Prepare a multi-step income statement. Assume a 24.5% tax rate. B. Calculate the profit margin and the gross profit rate (make sure final answer is 2 decimals as a %). Rent expense mm long ten Question 2) Renee's Rugs Corporation had the following accounts in its adjusted trial balance for the year ended February 28, 2022: Salaries Payable $36,800 Sales Returns and Allowances $ 25,200 Sales Discounts 33,800 Utilities Expense 60,060 Accounts Payable 146,600 Accounts Receivable 89.900 Accumulated Depreciation-Buildings 136,700 Buildings 555,550 Cost of Goods Sold 1,111,100 Prepaid Insurance 20,000 Maintenance and Repairs Expense 19,400 Retained Earnings, Mar. 1 234,567 Salaries Expense 202,200 Sales Revenue 1.245,700 Common Stock 485,550 Notes Payable Rug Cleaner Rental Revenue 1,201,200 Uneamed Revenue 31,200 Depreciation Expense-Equipment 48,100 Dividends 76,543 Equipment 289,300 Gain on Sale of Plant Assets 33,300 Supplies 107,770 Insurance Expense 50,700 Accumulated Depreciation Equipment 81,300 Cash 195,350 Interest Expense 7,600 Interest Payable 4,040 Inventory 88,800 Land 843.600 Additional Data: $77,777 of the notes payable is due within the next year. The remaining portion will be paid in the years thereafter. Assume a tax rate of 25%. Instructions (in color): A. Prepare a multiple-step income statement, a retained earnings statement, and a classified balance sheet. B. Calculate the profit margin and the gross profit rate (make sure final answer is 2 decimals as a %). Question 3) Assume that on May 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During May, these transactions occurred. May 6 Purchased calculators from Dragoo Co. at a total cost of $2,800, terms n/30. B 9 Paid freight of $230 on calculators purchased from Dragoo Co. B 10 Returned calculators to Dragoo Co. for $66 credit because they did not meet specifications. B 12 Sold calculators costing $444 for $666 to Fryer Book Store, terms 1/30. S 14 Granted credit of $54 to Fryer Book Store for the return of one calculator that was not ordered. The s calculator cost $43. 20 Sold calculators costing $570 for $760 to Heasley Card Shop, terms n/30.5 Instructions: Journalize the May transactions (in color). . . Question 4) The following transactions are for Solarte Company On December 3, Solarte Company sold 5990,000 of merchandise to Rooney Co., terms 3/10, 1/30. The cost of the merchandise sold was $630,000. On December 8, Rooney Co. was granted an allowance of $49,000 for merchandise purchased on December 3. On December 13, Solarte Company received the balance due from Rooney Co. Instructions (in color): A. Prepare the journal entries to record these transactions on the books of Solarte Company. Solarte uses a perpetual inventory system. B. Assume that Solarte Company received the balance due from Rooney Co. on January 2 of the following year instead of December 13. Prepare the journal entry to record he receipt of payment on January 2. Question 5) Krey Distributing Company completed these merchandising transactions in the month of April. Apr.2 Purchased merchandise on account from Am-Bev Co. $8,700, terms 4/10,n/30. B S4 Sold merchandise on account $8,000, terms 3/10,n/30. The cost of the merchandise sold was $3,700.5 0 5 Paid $250 freight on April 4 sale. S 6 Received creditfrom Am-Bev Co. for merchandise returned $1,500. B 11 Paid Am-Bev Co. in full. 13 Received collections in full from customers billed on April 4. 14 Purchased merchandise for cash $4.700. 16 Received refund from supplier for returned merchandise on cash purchase of April 14, $500. 18 Purchased merchandise from Lohr Distributors $5,500, terms 3/10,n/30. 20 Paid freight on April 18 purchase $180. 23 Sold merchandise for cash $8,300. The cost of the merchandise sold was $5,580. 26 Purchased merchandise for cash $2,300. 27 Paid Lohr Distributors in full. 29 Made refunds to cash customers for returned merchandise $180. The returned merchandise had a cost of $120. 30 Sold merchandise on account $3,980, terms n/30. The cost of the merchandise sold was $2,500. structions: Journalize the transactions using a perpetual inventory system (in color)