write my assignment 18141

 P5-5B An inexperienced accountant prepared this condensed income statement for Wright Company, a retail firm that has been in business for a number of years.WRIGHT COMPANYIncome StatementFor the Year Ended December 31, 2014RevenuesNet sales                              $952,000Other revenues                        16,000                                                  968,000Cost of goods sold                     548,000Gross profit                                420,000Operating expensesSelling expenses                    160,000Administrative expenses         104,000                                                 264,000Net earnings                             $156,000As an experienced, knowledgeable accountant, you review the statement and determine the following facts.1.  Net sales consist of sales $972,000, less freight-out on merchandise sold $20,000.2.  Other revenues consist of sales discounts $12,000 and interest revenue $4,000.3.  Selling expenses consist of salespersons' salaries $88,000; depreciation on equipment $4,000; sales returns and allowances $46,000; advertising $12,000; and sales commissions $10,000. All compensation should be recorded as Salaries and Wages Expense.4.  Administrative expenses consist of office salaries $54,000; dividends $14,000; utilities $13,000; interest expense $3,000; and rent expense $20,000, which includes prepayments totaling $2,000 for the first month of 2015. The utilities represent utilities paid. At December 31, utility expense of $3,000 has been incurred but not paid.

 P5-5B An inexperienced accountant prepared this condensed income statement for Wright Company, a retail firm that has been in business for a number of years.WRIGHT COMPANY

Income Statement

For the Year Ended December 31, 2014

Revenues

Net sales                              $952,000

Other revenues                        16,000

                                                  968,000

Cost of goods sold                     548,000

Gross profit                                420,000

Operating expenses

Selling expenses                    160,000

Administrative expenses         104,000

                                                 264,000

Net earnings                             $156,000

As an experienced, knowledgeable accountant, you review the statement and determine the following facts.

1.  Net sales consist of sales $972,000, less freight-out on merchandise sold $20,000.

2.  Other revenues consist of sales discounts $12,000 and interest revenue $4,000.

3.  Selling expenses consist of salespersons’ salaries $88,000; depreciation on equipment $4,000; sales returns and allowances $46,000; advertising $12,000; and sales commissions $10,000. All compensation should be recorded as Salaries and Wages Expense.

4.  Administrative expenses consist of office salaries $54,000; dividends $14,000; utilities $13,000; interest expense $3,000; and rent expense $20,000, which includes prepayments totaling $2,000 for the first month of 2015. The utilities represent utilities paid. At December 31, utility expense of $3,000 has been incurred but not paid.

 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

Comments are closed.

Hi there! Click one of our representatives below and we will get back to you as soon as possible.

Chat with us on WhatsApp