Question
The following data were extracted from the accounting records of Dana Designs for the year ended March 31. Merchandise inventory, April 1 $530,000 Merchandise inventory,
The following data were extracted from the accounting records of Dana Designs for the year ended March 31.
Merchandise inventory, April 1 | $530,000 |
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Merchandise inventory, March 31 | 375,000 |
Purchases | 270,000 |
Purchases returns and allowances | 25,000 |
Purchases discounts | 10,000 |
Sales | 770,000 |
Freight in | 3,000 |
Required: | |
Prepare the cost of merchandise sold section of the income statement for the year ended March 31, using the periodic method. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. You will not need to enter colons (:), it will automatically appear if it is required. Be sure to complete the statement heading. If an amount is a negative number use a minus sign to indicate. |
Labels | |
For the Year Ended March 31 | |
Cost of merchandise sold | |
Amount Descriptions | |
Cost of merchandise purchased | |
Freight in | |
Gross profit | |
Merchandise available for sale | |
Merchandise inventory, April 1 | |
Merchandise inventory, March 31 | |
Net purchases | |
Purchases | |
Purchase discounts | |
Purchase returns and allowances | |
Sales | |
Total cost of merchandise purchased |
Prepare the cost of merchandise sold section of the income statement for the year ended March 31, using the periodic method. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. You will not need to enter colons (:), it will automatically appear if it is required. Be sure to complete the statement heading. If an amount is a negative number use a minus sign to indicate.
Dana Designs |
Income Statement |
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