Compute the amount of the cost of goods sold in year
Course:- Accounting Basics
Reference No.:- EM131567651

Assignment Help
Assignment Help >> Accounting Basics

Question - Boston bait shop uses a periodic inventory system. At December 31, year 2, the accounting records include the following information:

Inventory (as of December 31, year 1) $2,800

net sales 79,600

purchases 30,200

A complete physical inventory taken at december 31, year 2, indicates merchandise costing $3,000 remains in stock.

a. How were the amounts of beginning and ending inventory determined?

b. Compute the amount of the cost of goods sold in year 2.

d. Prepare a partial income statement showing the shop's gross profit for the year.

e. Describe why a company such as boston bait shop would use a periodic inventory system rather than a perpetual inventory system.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Discuss the accuracy of the following statements regarding internal control The more computerized applications within a company accounting system, the lower the risk will be
Karen is a human resources consultant at a local utility. Originally, the work requested was project based. Karen was asked to develop training materials for an upcoming sessi
You have been employed as an entry level management accountant for little under a year. You suspect that your immediate supervisor is involved in a significant fraud involvi
The following are partial income statement account balances taken from the December 31, 2009, year-end trial balance of White and Sons, Inc. Restructuring costs 300,000 Intere
On April 3, 2008, Mark filed his 2007 Income tax return, which showed a tax due of $80,000. On June 1, 2010, he filed an amended retrun for 2007 that showed an additional ta
For each of the following transactions, indicate which company should include the inventory on its December 31, 2014, balance sheet: 1. Michelson Supplies Inc. shippe
Explain how the two metaphors - conversation and direct-manipulation can be used to bridge the gulf of evaluation and gulf of execution. Illustrate with examples for each.
The following transactions were completed by Caroline Landscaping & Merchandising Operation Inc: At Caroline Inc: books are closed at the end of March 31 January 1. Caroline C