Prepare a multiple step income statement for fiscal year

Assignment Help Financial Accounting

Reference no: EM132473129

Research in Motion and Apple are competitors in the global marketplace. Key comparative figure for each company follow.

Net Sales Cost of sales

Nokia...................................... 40,984 27,720

Research in Motion ............... $14,953 $8, 369

Apple.........................................$42,905 $25,683

EUR millions for Nokia

$ Millions for Research in Motion and Apple

Question 1. Rank the three companies (highest to lowest based on the gross margin ratio.

Question 2. Which of the companies uses a multiple-step income statement format?

Question 3. Prepare adjusting journal entries to reflect each of the following

a. Store supplies still available at fiscal year-end amount to $1650.

b. Expired insurance, an administrative expense, for the fiscal year is $1500.

c. Depreciation expense on store equipment, a selling expense, is $1400 for the fiscal year

d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $11,100 of inventory is still available at fiscal year-end.

Question 4. Prepare a multiple step income statement for fiscal year 2011.

Question 5. Prepare a single step income statement for fiscal year 2011

Question 6. Compare the current ratio, acid-test ratio, and gross margin ratio as January 31, 2011

The following information is available to reconcile Clark Company's book balance ofcash with its bank statement cash balance as of July 31, 2011

a. On July 31, the company's cash account has a $26,193 debit balance, but its July bank statement shows a $28,020 cash balance.

b. Check No. 3031 for $1380 and check NO. 3040 For $ 552 were outstanding on the June 30 ban reconciliation. Check No. 3040 is listed with July canceled checks, but Check 3031 is not. Also Check No 3065 for $336 and check No 3069 for $2148, both written in July, are not among the canceled checks on the July 31 statement

c. In comparing the canceled checks on the bank statement with entries in the accounting records it is found that check No 3056 for July rent was correctly written and drawn for $1250 but was erroneously entered in the accounting records as$ 1230

d. A credit memorandum enclosed with the July bank statement indicates the bank collected $9000 cash on a non-interest bearing note for Clark, deducted a $45 collection fee and credited them reminder to its accounts. Clark had not recorded this event before receiving the statement.

e. A debit memorandum for$ 805 lists a$ 795 NSF check plus a $10 NSF charge. The check had been received from a customer, Jim Shaw; Clark has not yet recorded this as NSF.

f. Enclosed with July statement is a $15 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received.

g. Clark's July 31 daily cash receipts of $10, 152 were placed in the bank's night depository on that date, but do not appear on the July 31 bank statement.

Reference no: EM132473129

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