Question
The following data are for Mark Retail Outlet Stores. The account balances (in thousands) are for 2020. Requirements 1. Compute (a) the cost of goods
The following data are for Mark Retail Outlet Stores. The account balances (in thousands) are for 2020.
Requirements
1. | Compute (a) the cost of goods purchased and (b) the cost of goods sold. |
2. | Prepare the income statement for 2020. |
Requirement 1. Compute (a) the cost of goods purchased and (b) the cost of goods sold.
(a) Begin by completing the schedule of cost of goods purchased.
Mark Retail Outlet Stores | ||||
Schedule of Cost of Goods Purchased | ||||
For the Year Ended December 31, 2020 (in thousands) | ||||
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Add: |
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Deduct: |
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Cost of goods purchased |
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Data Table
Marketing and advertising costs | $49,000 |
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Merchandise inventory, January 1, 2020 | 91,000 |
Shipping of merchandise to customers | 9,000 |
Depreciation on store fixtures | 9,000 |
Purchases | 529,000 |
General and administrative costs | 69,000 |
Merchandise inventory, December 31, 2020 | 110,000 |
Merchandise freight-in | 29,000 |
Purchase returns and allowances | 30,000 |
Purchase discounts | 24,000 |
Revenues | 630,000 |
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