The following is a list of selected events for Unger Sales andService for 2012. Unger uses a perpetual inventory system and had azero inventory balance prior to these transactions.
1) Purchased merchandise on account for $67,000.
2) Sold inventory costing $48,000 for $88,000 on account.
3) Paid transportation-out cost of $1,000 on goods sold.
4) Paid salary expense of $25,000.
5) A count of the inventory revealed that there was $18,500 ofinventory on hand at the end of 2012.
Required:
Answer the following questions based on the aboveinformation.
a) What was Unger's net income for 2012?
b) Compute gross margin for 2012.
c) What amount of inventory will appear on the balance sheet for2012?
d) Prepare an income statement for 2012.
The following is a list of selected events for Unger Sales andService for 2012. Unger uses a perpetual inventory system and had azero inventory balance prior to these transactions.
1) Purchased merchandise on account for $67,000.
2) Sold inventory costing $48,000 for $88,000 on account.
3) Paid transportation-out cost of $1,000 on goods sold.
4) Paid salary expense of $25,000.
5) A count of the inventory revealed that there was $18,500 ofinventory on hand at the end of 2012.
Required:
Answer the following questions based on the aboveinformation.
a) What was Unger's net income for 2012?
b) Compute gross margin for 2012.
c) What amount of inventory will appear on the balance sheet for2012?
d) Prepare an income statement for 2012.
Related questions
The following transactions apply to Bobâs Bike Shop for 2016,its first year of operations:
| 1. | Acquired $35,000 cash from theissue of common stock. | ||||||||||
| 2. | Acquired $9,600 of merchandise from Bob Hall, the owner, who hadacquired the merchandise prior to opening the shop. Issued commonstock to Bob in exchange for the merchandise inventory. | ||||||||||
| 3. | Purchased $85,000 of inventoryon account. | ||||||||||
| 4. | Paid $2,800 for radio ads. | ||||||||||
| 5. | Sold inventory for $165,000cash. | ||||||||||
| 6. | Paid $28,000 in salary to apart-time salesperson. | ||||||||||
| 7. | Paid $65,000 on accounts payable(see Event 3). | ||||||||||
| 8. | Physically counted inventory, which indicated that $28,500 ofinventory was on hand at the end of the accounting period.
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