Exam 3: Accounting for Merchandising Businesses

Scott Company is a merchandising business that was started in 2012.Scott uses the perpetual inventory system.It experienced the following events during 2012. 1.Acquired $25,000 cash by issuing common stock 2.Purchased inventory on account that cost $14,000,terms 2/10,n/30 3.Sold inventory that had cost $8,400 for $15,000 cash 4.Paid for the merchandise referred to in event 2,within the discount period Required: a)Record the events in the financial statements model below; include column totals. b)Prepare an income statement for 2012. c)What is the amount of total assets at the end of 2012?

Waco Company's Cost of Goods Sold for 2012 was $302,000.Which of the following statements is true?

Hanson Company uses a periodic inventory system.For 2012,its beginning inventory was $74,000; purchases of inventory were $328,000; and inventory at the end of the period was $89,000.What was the amount of Hanson's cost of goods sold for 2012?