An adjusted trial balance for Woods Company is presented below.Prepare a multiple-step income statement for the company. \[\begin{array} {c} { \text { Woods Company } } \\ { \text { Adjusted Trial Balance } } \\ \text { For the Year Ended December 31, } 2012 \\ \begin{array}{ | l | r | r | } \hline & & \\ \hline \text { Cash } & \$ 45,000 & \\ \hline \text { Accounts receivable } & 50,000 & \\ \hline \text { Inventory } & 96,000 & \\ \hline \text { Equipment } & 100,000 & \\ \hline \text { Accumulated depreciation-equipment } & & \$ 20,000 \\ \hline \text { Accounts payable } & & 56,000 \\ \hline \text { D. Woods, capital } & & 201,000 \\ \hline \text { D. Woods, drawing } & 36,000 & \\ \hline \text { Sales revenue } & & 455,000 \\ \hline \text { Sales returns and allowances } & 30,000 & \\ \hline \text { Sales discounts } & 25,000 & \\ \hline \text { Cost of goods sold } & 260,000 & \\ \hline \text { Salary expense } & 52,000 & \\ \hline \text { Insurance expense } & 9,000 & \\ \hline \text { Utilities expense } & 19,000 & \\ \hline \text { Depreciation expense } & 10,000 & \\ \hline \text { Delivery expense } & 15,000 & \\ \hline \text { Interest revenue } & & 28,000 \\ \hline \text { Interest expense } & 13,000 & \\ \hline \text { Total } & \$ 760,000 & \$ 760,000 \\ \hline \end{array}\end{array}\]

\[\begin{array}{c} \text { Woods Company

Referring to the following table,what is Net sales revenue? \[\begin{array} { | r | r | } \hline \text { Sales revenue } & \$ 460,000 \\ \hline \text { Cost of goods sold } & 300,000 \\ \hline \text { Operating expenses } & 85,000 \\ \hline \text { Sales discounts } & 20,000 \\ \hline \text { Sales returns and allowances } & 15,000 \\ \hline \text { Interest revenue } & 5,000 \\ \hline \end{array}\]

A) $400,000 B) $415,000 C) $425,000 D) $455,000 A) $400,000 B) $415,000 C) $425,000 D) $455,000

Referring to the following table,what is Gross profit? \[\begin{array} { | r | r | } \hline \text { Sales revenue } & \$ 460,000 \\ \hline \text { Cost of goods sold } & 300,000 \\ \hline \text { Operating expenses } & 85,000 \\ \hline \text { Sales discounts } & 20,000 \\ \hline \text { Sales returns and allowances } & 15,000 \\ \hline \text { Interest revenue } & 5,000 \\ \hline \end{array}\]

A) $90,000 B) $125,000 C) $140,000 D) $160,000 A) $90,000 B) $125,000 C) $140,000 D) $160,000

Exam 5: Merchandising Operations

Michelin Jewelers completed the following transactions.Michelin Jewelers uses the perpetual inventory system.On April 2,Michelin sold $9,000 of merchandise to a customer on account with terms of 3/15,n/30.Michelin's cost of the merchandise sold was $5,500. -Which of the following journal entries correctly records the Sales revenue?

(Multiple Choice)

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Question 141

A company sold merchandise for $350 that cost $221.The entry to record the cost of the merchandise sold would be a:

(Multiple Choice)

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Question 142

When a company is purchasing inventory,and pays early to take advantage of the purchase discount offered by the vendor,that amount is debited to the Inventory account.

(True/False)

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Question 143

In a periodic system,inventory balances and the cost of goods sold for the current period are determined:

(Multiple Choice)

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Question 144

Inventory turnover is 8.0.Calculate days in inventory.

(Multiple Choice)

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Question 145

Cost of goods sold appears on both a multi-step income statement and a single-step income statement.

(True/False)

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Question 146

Which of the following correctly describes the rate of inventory turnover?

(Multiple Choice)

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Question 147

A company uses the periodic inventory method.Which of the following entries would be made to record a return of $200 of inventory purchased on account?

(Multiple Choice)

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Question 148

Which of the following is used to determine the rate of inventory turnover?

(Multiple Choice)

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Question 149

Which of the following describes Net sales revenue?

(Multiple Choice)

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Question 150

An adjusted trial balance for Woods Company is presented below.Prepare a multiple-step income statement for the company. Woods Company Adjusted Trial Balance For the Year Ended December 31, 2012 Cash \ 45,000 Accounts receivable 50,000 Inventory 96,000 Equipment 100,000 Accumulated depreciation-equipment \ 20,000 Accounts payable 56,000 D. Woods, capital 201,000 D. Woods, drawing 36,000 Sales revenue 455,000 Sales returns and allowances 30,000 Sales discounts 25,000 Cost of goods sold 260,000 Salary expense 52,000 Insurance expense 9,000 Utilities expense 19,000 Depreciation expense 10,000 Delivery expense 15,000 Interest revenue 28,000 Interest expense 13,000 Total \ 760,000 \ 760,000

(Essay)

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Question 151

Referring to the following table,what is Net sales revenue? Sales revenue \ 460,000 Cost of goods sold 300,000 Operating expenses 85,000 Sales discounts 20,000 Sales returns and allowances 15,000 Interest revenue 5,000

(Multiple Choice)

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Question 152

The entry to close Cost of goods sold results in a debit to Income summary.

(True/False)

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Question 153

A business has beginning Capital of $100,000.During the year,Sales revenues were $20,000,Sales returns and allowances were $300,Sales discounts were $700,Cost of goods sold were $12,000,and all other expenses totaled $4,500.$1,000 of withdrawals were taken.The fourth closing entry would include which of the following line items?

(Multiple Choice)

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Question 154

Referring to the following table,what is Gross profit? Sales revenue \ 460,000 Cost of goods sold 300,000 Operating expenses 85,000 Sales discounts 20,000 Sales returns and allowances 15,000 Interest revenue 5,000

(Multiple Choice)

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Question 155

A company receives an invoice that indicates that title to the merchandise will pass to the company when they receive the goods.This situation is described as FOB destination.

(True/False)

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Question 156

On November 1,2012,Everett Janitorial Supply sold merchandise for $5,000,FOB destination,2/10,n/30.The merchandise cost $3,200. -Please provide the journal entry to record Cost of goods sold.

(Essay)

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Question 157

Michelin Jewelers completed the following transactions.Michelin Jewelers uses the perpetual inventory system.On April 2,Michelin sold $9,000 of merchandise to a customer on account with terms of 3/15,n/30.Michelin's cost of the merchandise sold was $5,500.On April 4,the customer reported damaged goods and Michelin granted a $1,000 sales allowance. -Which of the following entries correctly records the sales allowance on Michelin's books?

(Multiple Choice)

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Question 158

On a merchandising balance sheet,Merchandise inventory is listed as a(n):

(Multiple Choice)

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Question 159

Which of the following are the normal balances of Sales,Sales discounts,and Sales returns and allowances,respectively?

(Multiple Choice)

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Question 160

A company sold merchandise for $350 that cost $221.The entry to record the cost of the merchandise sold would be a:

When a company is purchasing inventory,and pays early to take advantage of the purchase discount offered by the vendor,that amount is debited to the Inventory account.

In a periodic system,inventory balances and the cost of goods sold for the current period are determined:

Inventory turnover is 8.0.Calculate days in inventory.

Cost of goods sold appears on both a multi-step income statement and a single-step income statement.

Which of the following correctly describes the rate of inventory turnover?

A company uses the periodic inventory method.Which of the following entries would be made to record a return of $200 of inventory purchased on account?

Which of the following is used to determine the rate of inventory turnover?

Which of the following describes Net sales revenue?

Referring to the following table,what is Net sales revenue? Sales revenue \ 460,000 Cost of goods sold 300,000 Operating expenses 85,000 Sales discounts 20,000 Sales returns and allowances 15,000 Interest revenue 5,000

The entry to close Cost of goods sold results in a debit to Income summary.

Referring to the following table,what is Gross profit? Sales revenue \ 460,000 Cost of goods sold 300,000 Operating expenses 85,000 Sales discounts 20,000 Sales returns and allowances 15,000 Interest revenue 5,000

A company receives an invoice that indicates that title to the merchandise will pass to the company when they receive the goods.This situation is described as FOB destination.

On November 1,2012,Everett Janitorial Supply sold merchandise for $5,000,FOB destination,2/10,n/30.The merchandise cost $3,200. -Please provide the journal entry to record Cost of goods sold.

On a merchandising balance sheet,Merchandise inventory is listed as a(n):

Which of the following are the normal balances of Sales,Sales discounts,and Sales returns and allowances,respectively?

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Inventory

Internal Control and Cash

Receivables

Plant Assets and Intangibles

Current Liabilities and Payroll

Long-Term Liabilities, bonds Payable, and Classification of Liabilities on the Balance Sheet

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