Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The ledger of Riyadh Shop showed Cash 1,250 SR; and Owner's Capital 1,250 SR, at the beginning of the current season on March 1. These

image text in transcribed
The ledger of Riyadh Shop showed Cash 1,250 SR; and Owner's Capital 1,250 SR, at the beginning of the current season on March 1. These transactions occurred during March 2019. Mar 5. Purchased sport bags, gloves, and shoes on account from Jeddah Co. 1,350 SR, FOB shipping point, terms 2/10, 1/60. Mar 7. Paid freight on Jeddah Co. purchases 40 SR. Mar 9. Received credit from Jeddah Co. for merchandise returned 100 SR. Mar 10. Sold merchandise on account to BJ Sportswaers 475 SR, FOB destination, terms 1/30, the cost of goods sold was 375 SR Mar 10. Paid freight out 30.5 SR. Mar 12. Purchased shoes, sweaters, and other accessories on account from London Sportswear 230 SR, terms 1/10,n30. Mar 17. Received credit from London Sportswear for merchandise returned 30 SR Mar 20. Made sales on account to a member 700 SR, terms n/30.the cost of goods sold was 600 SR Mar 21. Paid London Sportswear in full. Mar 27. Granted credit 37.5 SR to a member for clothing that did not fit properly costing 27.5 SR Mar 30. Received payments from the member in full. Instructions: 1. Journalize the March transactions for Riyadh Shop using a perpetual inventory system. 2. Using T accounts, enter the beginning balances (if any) in the ledger accounts and post the March transactions. 3. Prepare a trial balance on March 31, 2019. 4. Prepare a multiple-steps income statement. Other data: Riyadh Shop received a dividend revenue of 900 SR. Riyadh Shop incurred a 1,000 SR loss on disposal of equipment. Riyadh Shop paid a 200 SR Interest expense. Calculate the gross profit for March 2019. The .5 company had a gross profit of 14% in the previous month, February 2019. Compare the result with the last month gross profit and comment on that. The industrial average is 22% in March 31, 2019. Compare your result for March 2019 with the industrial average and comment on how the company can improve its performance and compete in the market

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

Inventory Best Practices

Authors: Steven M. Bragg

2nd Edition

1118000749, 9781118000748

More Books

Students also viewed these Accounting questions