The following selected account data is taken from the records of Reese Industries for 2019. Assume the perpetual inventory system is used. Sales $644,363 Merchandise Inventory 580,620 Sales Discounts 58,050 Interest Expense 3,777 Sales Returns and Allowances 90,232 Interest Revenue 10,268 Cost of Goods Sold 226,598 Rent Expense 15,070 Depreciation Expense-Office Equipment 3,600 Insurance Expense 2,450 Advertising Expense 12,890 Accounts Receivable 102,440 Office Supplies Expense 1,600 Rent Revenue 23,690 Sales Salaries Expense 30,410 Accounts Payable 138,404 Common Stock 59,419 Marketing Expense 33,000 Question Content Area A. Use the data provided to compute net sales for 2019. B. Prepare a simple income statement for the year ended December 31, 2019. C. Compute the gross margin for 2019.
The following selected account data is taken from the records of Reese Industries for 2019. Assume the perpetual inventory system is used. Sales $644,363 Merchandise Inventory 580,620 Sales Discounts 58,050 Interest Expense 3,777 Sales Returns and Allowances 90,232 Interest Revenue 10,268 Cost of Goods Sold 226,598 Rent Expense 15,070 Depreciation Expense-Office Equipment 3,600 Insurance Expense 2,450 Advertising Expense 12,890 Accounts Receivable 102,440 Office Supplies Expense 1,600 Rent Revenue 23,690 Sales Salaries Expense 30,410 Accounts Payable 138,404 Common Stock 59,419 Marketing Expense 33,000 Question Content Area A. Use the data provided to compute net sales for 2019. B. Prepare a simple income statement for the year ended December 31, 2019. C. Compute the gross margin for 2019.
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 15EA: The following select account data is taken from the records of Reese Industries for 2019. A. Use the...
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The following selected account data is taken from the records of Reese Industries for 2019. Assume the perpetual inventory system is used.
Sales | $644,363 |
Merchandise Inventory | 580,620 |
Sales Discounts | 58,050 |
Interest Expense | 3,777 |
Sales Returns and Allowances | 90,232 |
Interest Revenue | 10,268 |
Cost of Goods Sold | 226,598 |
Rent Expense | 15,070 |
3,600 | |
Insurance Expense | 2,450 |
Advertising Expense | 12,890 |
Accounts Receivable | 102,440 |
Office Supplies Expense | 1,600 |
Rent Revenue | 23,690 |
Sales Salaries Expense | 30,410 |
Accounts Payable | 138,404 |
Common Stock | 59,419 |
Marketing Expense | 33,000 |
Question Content Area
A. Use the data provided to compute net sales for 2019.
B. Prepare a simple income statement for the year ended December 31, 2019.
C. Compute the gross margin for 2019.
D. Prepare a multi-step income statement for the year ended December 31, 2019.
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