User Account

All Pages

Prepare partial income statement of jp company

Assignment Help Financial Accounting
Reference no: EM131891148

Assignment

JP Company (JP) is engaged in the purchases and sales of dashboard cameras. The company adopts perpetual inventory system and records purchases of goods at gross invoice price. The company closes its account annually on 31 December. The following information was extracted from the unadjusted trial balance dated on 30 November 2016:

 

Debit
$

Credit
$

Sales

 

4.250.000

Sales returns and allowances

120,000

 

Cost of goods sold

2.800,000

 

Sales discounts

16.000

 

Inventory

740.000

 

Purchase discounts taken

 

32,000

The following transactions occurred in December 2016:

1 Dec JP purchased S180.000 inventory from Rachel Company with credit term of 1/15 n/30.

3 Dec JP sold goods to Chris Company at 880.000. offering credit term of 1/10. n/40. Gross profit rate is 30%.

7 Dec JP sold goods to Martina Company at S150.000. offering credit term of 3/15. n/30. Gross profit rate is 40%.

11 Dec JP returned $20.000 inventory to Rachel Company due to incorrect model.

12 Dec Martina returned 830.000 cameras to JP due to incorrect brand.

13 Dec JP paid to Rachel Company in full regarding to purchase in December.

18 Dec JP received check from Martina Company for frill settlement regarding to sales in December.

31 Dec JP conducted physical count of inventory and revealed 8748.000 inventory was on hand.

Required:

a) Prepare journal entries for JP Company for the above transactions in December 2016.

b) Prepare partial Income Statement of JP Company for the year ended 31 December 2016 to show gross profit of the year.

Reference no: EM131891148

Questions Cloud

Write an analysis essay of a modest proposal : Write an analysis essay of 'A modest Proposal' by Swift Jonathan. 800-1000 words double spaced. Write the thesis, methods of proof and so on.
Construct the loan amortization schedule : Construct the loan amortization schedule. Include beginning balance, payment, interest paid, principal paid, and ending balance.
What will be the company contribution margin : Variable COGS (2,000 * $1.25) - 2,500. If sales increase to 2,500 units, what will be the company's contribution margin
How much is the inheritance worth today : If Ron can earn 6% in his investments, how much is the inheritance worth today?
Prepare partial income statement of jp company : Prepare partial Income Statement of JP Company for the year ended 31 December 2016 to show gross profit of the year.
What is the annual rate of interest : To repay a loan of $2000 from your bank, you promise to make equal payments every six months for the next five years totaling $3116.20.
Compute the operating cost per mile : Calculate the annual variable and fixed costs of the vehicle.
Differences between bottom-up and top-down perception : The brain's interpretation of stimuli informs perception. Two theoretical approaches to perception include bottom-up and top-down perception.
What was the company production cost per unit : The company made 250,000 units and sold 210,000 units for $5 each. What was the company's production cost per unit

Reviews

Write a Review

Financial Accounting Questions & Answers

  Should each of these costs be capitalized or expensed

The three types of costs incurred in coal production are acquisition costs (costs to acquire the coal rich lands plus the present value of future cash flows necessary to restore the sites minus the cost of the land), exploration costs (costs of minin..

  What factors motivate acquisition transactions

What is qualitative information? What is quantitative information. what factors motivate acquisition transactions? Which are the most important do you think?

  Lifo method-what is the value of inventory on hand

Using the LIFO method: beginning inventory on August 1 has 2 items valued at $100 each. On August 8, three items were purchased for $250 per unit. On August 10, two units were sold. On August 20, two units at $300 each were purchased. What is the val..

  Balance sheet preparation use the appropriate items

Balance sheet preparation Use the appropriate items from the following list to prepare in good form Mellark’s Baked Goods balance sheet at December 31, 2015.

  The total amount of stockholders equity

At the end of the accounting period, Harris Company had a balance of $7,000 in its common stock account, additional paid in capital of $8,800, retained earnings of $7,500, and $4,750 of treasury stock. The total amount of stockholders' equity is:

  Specifically interpret apple financial condition

Based on these ratios, specifically interpret Apple's financial condition by using examples of Profitability Ratios, Leverage Ratios, Liquidity Ratios, and Efficiency Ratios.

  Materials and supplies in the flexible budget

Cadavieco Detailing's cost formula for its materials and supplies is $1,980 per month plus $10 per vehicle. For the month of November, the company planned for activity of 93 vehicles, but the actual level of activity was 53 vehicles. The actual mater..

  Statement of cash flows assuming the indirect method

Land Transactions on the Statement of Cash Flows Milo Corporation purchased land for $540,000. Later in the year, the company sold a different piece of land with a book value of $270,000 for $180,000. How are the effects of these transactions reporte..

  Determine the basic earnings per share for crystal arts

Crystal Arts, Inc., had earnings of $160,000 for 2010. The company had 20,000 shares of common stock outstanding during the year. In addition, the company issued 2,000 shares of $100 par value preferred stock on January 3, 2010.

  Prepare a trial balance as of september thirty

Prepare a trial balance as of September 30, 2014. Business Application- Examine the transactions for September 3, 10, 19, and 29. What were the revenues, and how much cash was received from the revenues?

  What income tax expense should appear on consolidated

What income tax expense should appear on the consolidated income statement if each company files a separate return? Assume that the tax rate is 30 percent.

  Transaction as either operating-investing-financing activity

Selected transactions of Eller Company are listed below. Classify each transaction as either a(n)operating activity, investing activity, financing activity, or non-cash investing and financing activity by placing in X in the appropriate column on the..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd