7. Converge Company operates two lines of business. Business 1 is subject to VAT, while Business 2 is not. Data for the month are as follows: Sales VAT business, VAT included Non-VAT business Purchases Merchandise, VAT business, VAT included Merchandise, Non-VAT business Capital goods, VAT business, VAT included Capital goods, Non-VAT business Capital goods, for use in both business, VAT included Rent of store space, VAT business, VAT included Rent of warehouse, VAT & Non-VAT business, VAT excluded Freight of goods, VAT & Non-VAT business, VAT included Telephone and broadband bills, VAT and Non-VAT, VAT included The input tax on Business 1 is. A. 18,875 B. 23,267 C. 23.747 P 560,000 100,000 154,000 67,100 34,776 27,500 56,000 14,560 6,200 2,576 1,624

7. Converge Company operates two lines of business. Business 1 is subject to VAT, while Business 2 is not. Data for the month are as follows: Sales VAT business, VAT included Non-VAT business Purchases Merchandise, VAT business, VAT included Merchandise, Non-VAT business Capital goods, VAT business, VAT included Capital goods, Non-VAT business Capital goods, for use in both business, VAT included Rent of store space, VAT business, VAT included Rent of warehouse, VAT & Non-VAT business, VAT excluded Freight of goods, VAT & Non-VAT business, VAT included Telephone and broadband bills, VAT and Non-VAT, VAT included The input tax on Business 1 is. A. 18,875 B. 23,267 C. 23.747 P 560,000 100,000 154,000 67,100 34,776 27,500 56,000 14,560 6,200 2,576 1,624

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter5: Accounting Systems

Section: Chapter Questions

Problem 1E: Using the following revenue journal for Bowman Cleaners Inc., identify each of the posting...

See similar textbooks

Similar questions

Show the effects of the labor and MOH costs through T-accounts for the company's inventory and Cost of Sales accounts. (For balances beginning/ending in O select "Beg. Bal." and "End Bal." for the date and O for the amounts for the balance of the account.) WIP Inventory FG Inventory ✓
Activity 1. Classify Me Instruction: Identify each element or account title if it can be found on a service or merchandising business. Complete the table by putting a (v) check mark or (X) cross mark in the corresponding columns. ACCOUNTS SERVICE MERCHANDISING BUSINESS BUSINESS Ex. Professional Fees Sales Consulting Revenue Purchases Cost of Sales Inventory Beginning Referral Revenue Freight-In Purchase Returns and Allowances Advertising Revenue Purchase Discount Freight-out Unearned Revenue Utilities Expense Depreciation Expense Allowance for Bad debts Sales discount Supplies Sales Returns and allowances Advances to suppliers Advertising Expense
Multi-step Income Statement Pletenets Co. reports the following income statement accounts for the year ended December 31. Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative (G&A) expenses. Categorize the following accounts as selling expenses: sales staff salaries expense and advertising expense. Consider the remaining expenses as G&A. Sales discounts Office salaries expense Rent expense-Office space Advertising expense Sales returns and allowances Office supplies expense Cost of goods sold Sales Insurance expense Sales staff salaries expense $ 750 2,000 1,500 500 250 500 9,000 20,000 1,000 2,500 2
The revenue account for a merchandising business is typically called ___________. Group of answer choices inventory sales. unearned revenue. fees earned. sales or sales of merchandise.
Identify the following accounts if it is normally used in Service and/or in Merchandising Business Income Statement. 1 Sales 2 Service Income 3 Salaries 4 Purchases 5 Purchase Discount 6 Merchandise Inventory 7 Distribution Costs 8 Freight In 9 Transportation and Travelling 10 Rent Expense 11 Depreciation 12 Insurance 13 General and Administrative Expenses 14 Cost of Goods Sold 15 Goods Available for Sale 16 Interest Expense 17 Transportation In 18 Travel Expenses 19 Professional Income 20 Finance Expenses
SE4-8. The Multi-step Income Statement Dino Company, a merchandising firm, reports the following LO4 data for the month ended January 31: MBC Net sales.... Cost of goods sold.. Operating expenses. Other income... Income tax expense. $10,000 4,000 3,000 500 1,200 Prepare a multi-step income statement for Dino Company for the month of January.
Activity 1: TRUE OR FALSE. Write True if the statement is correct and False if it is not. ____ 1. The SCI is a picture of the result of operations of the company as of the cut-off date.____ 2. The major elements of the SCI are income and expenses.____ 3. Cost of sales is computed as cost of goods available for sale less ending inventory.____ 4. Expenses recognition strictly requires the matching expenses against revenue.____ 5. Goods returned by customers are immediately deducted to the Sales Revenue account.____ 6. In periodic inventory accounting, inventory is determined by conducting a physical count of merchandise owned.____ 7. Expenses decrease assets and therefore have credit normal balances.____ 8. Depreciation expense is a line account found in an SCI prepared following the multi-step format. ____ 9. Revenue result in increase in equity and therefore has a credit normal balance____ 10.All accounts in SCI is also called nominal accounts. Activity 2: Problem 1: The Happy…
For each of the following, indicate whether the item would be reported on the balance sheet (B/S),reported on the income statement (I/S), or not shown in the financial statements (Not) and whetherit relates to a service company (SC) or merchandising company (MC).Financial Statement Type of CompanyInventorySales RevenueCost of Goods Available for SaleService Revenue
Which of the following statement is False for Multi-step income statement of a merchandise business? a. It helps in analyzing how well the company is performing b. It divides the expenses into Selling, General and administration expenses c. Users can see how much expense is incurred in selling the product and how much is in administering business d. It divides operating expense into Direct and Indirect expenses.
Q-1: The following accounts are included in the ledger of David Company: Advertising expense Freight-in Inventory Purchases Purchase returns and allowances Sales Sales returns and allowances Which of the accounts would be included in calculating cost of goods sold?
Activity 1. True or False. Write "TRUE" if the statement is correct and "FALSE" if the statement is incorrect. 1. The cost of sales method presents expenses in the income statement according to its nature. 2. The main source of revenue in a merchandising business is sales. 3. Selling expenses are expenses necessary in the management of the office. 4. Merchandise inventory beginning plus net cost of purchases is cost of goods sold. 5. Sales less cost of goods sold is gross profit. 6. The multi-step income statement is used only in a service concern business. 7. The income statement shows the result of operating as well as the financial standing of a company as to a given date. 8. Other expenses are expenses directly related to the sale of merchandise. 9. Goods available for sale less merchandise inventory beginning is cost of goods sold. 10.In preparing the income statement 1/3 of a company, management may choose between the single-step income statement or multiple-step income statement…
The following transactions pertain to Year 1, the first-year operations of Rooney Company. All inventory was started and completed during Year 1. Assume that all transactions are cash transactions. 1. Acquired $4,900 cash by issuing common stock. 2. Paid $660 for materials used to produce inventory. 3. Paid $1,900 to production workers. 4. Paid $1,078 rental fee for production equipment. 5. Paid $90 to administrative employees. 6. Paid $106 rental fee for administrative office equipment. 7. Produced 340 units of inventory of which 190 units were sold at a price of $13 each. Required Prepare an income statement and a balance sheet in accordance with GAAP.