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Salon’s income from operations is Use the following information for questions 1–3. During 2008, Salon Enterprises generated revenues of $60,000. The company’s expenses were as follows: cost of goods sold of $30,000, operating expenses of $12,000 and a loss on the sale of equipment of $2,000. 1. Salon’s gross profit is a. $60,000. b. $30,000. c. $18,000. d. $16,000. 2. Salon’s income from operatio ...

Other / Other 01 Apr 2016

Baden Shoe Store has a beginning merchandise inventory 1. Net purchases plus freight-in determines a. cost of goods sold. b. cost of goods available for sale. c. cost of goods purchased. d. total goods available for sale. 2. West Company has the following account balances: Purchases $48,000 Sales Returns and Allowances 6,400 Purchase Discounts 4,000 Freight-in 3,000 Delivery Expense 4,000 The cost of goods purchased for the perio ...

Other / Other 01 Apr 2016

Sal’s gross profit for August, 2008 1. If a company has sales of $420,000, net sales of $400,000, and cost of goods sold of $260,000, the gross profit rate is a. 67%. b. 65% c. 35%. d. 33%. 2. Ingrid’s Fashions sold merchandise for $38,000 cash during the month of July. Returns that month totaled $800. If the company’s gross profit rate is 40%, Ingrid’s will report monthly net sales revenue and cost of go ...

Other / Other 01 Apr 2016

Cartier Company purchased inventory 1. The Merchandise Inventory account balance appearing in a worksheet represents the a. ending inventory. b. beginning inventory. c. cost of merchandise purchased. d. cost of merchandise sold. Additional Multiple Choice Questions 2. Cole Company has sales revenue of $39,000, cost of goods sold of $24,000 and operating expenses of $9,000 for the year ended December 31. Cole's gross profit is a. $ ...

Other / Other 01 Apr 2016

All of the following are contra revenue accounts except 1. Which of the following accounts has a normal credit balance? a. Sales Returns and Allowances b. Sales Discounts c. Sales d. Selling Expense 2. With respect to the income statement, a. contra-revenue accounts do not appear on the income statement. b. sales discounts increase the amount of sales. c. contra-revenue accounts increase the amount of operating expenses. d. sales d ...

Other / Other 01 Apr 2016

The operating expense section of an income statement 1. The operating expense section of an income statement for a wholesaler would not include a. freight-out. b. utilities expense. c. cost of goods sold. d. insurance expense. 2. Income from operations will always result if a. the cost of goods sold exceeds operating expenses. b. revenues exceed cost of goods sold. c. revenues exceed operating expenses. d. gross profit exceeds oper ...

Other / Other 01 Apr 2016

Milton Company provides this information Milton Company provides this information for the month of November, 2008: sales on credit $150,000; cash sales $50,000; sales discounts $2,000; and sales returns and allowances $8,000. Prepare the sales revenues section of the income statement based on this information. Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Manageme ...

Other / Other 01 Apr 2016

Terry Corporation had credit sales transactions 1. On October 4, 2008, Terry Corporation had credit sales transactions of $2,800 from merchandise having cost $1,900. The entries to record the day's credit transactions include a a. debit of $2,800 to Merchandise Inventory. b. credit of $2,800 to Sales. c. debit of $1,900 to Merchandise Inventory. d. credit of $1,900 to Cost of Goods Sold. 2. Which of the following accounts is not cl ...

Other / Other 01 Apr 2016

What entry does Manning Company make upon receipt Manning Company sells merchandise on account for $2,000 to Tiger Company with credit terms of 3/10, n/60. Tiger Company returns $200 of merchandise that was damaged, along with a check to settle the account within the discount period. What entry does Manning Company make upon receipt of the check and the damaged merchandise? Business Management Assignment Help, Business Management ...

Other / Other 01 Apr 2016

Guardian Company uses a periodic inventory system Assume that Guardian Company uses a periodic inventory system and has these account balances: Purchases $500,000; Purchase Returns and Allowances $14,000; Purchase Discounts $9,000; and Freight-in $15,000. Determine net purchases and cost of goods purchased. Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Co ...

Other / Other 01 Apr 2016