Let understand that the organized table are intended to calculate missing numbers on Income Statement for the two companies are drawn below.
- Here, we are calculating missing columns for Monty Corp. and Whispering Winds Corp.
- Also understand that the bold numbers are the columns calculated according to the question.
Particulars Monty Corp. Whispering Winds Corp.
Sales revenue $90,000 $111,000
Sales return and allowance <u>$6,000</u><u> </u> <u>$5,000</u>
Net sales $84,000 $106,000
Cost of goods sold <u>$53,760 </u> <u>$65,720</u><u> </u>
Gross profit $30,240 $40,280
Operating expenses <u>$15,120 </u> <u>$19,080 </u>
Net income <u>$15,120</u><u> </u> <u>$21,200</u>
In conclusion, the formulae used to derived the bolded answers are:
- Sales revenue - Net sales = Sales returns and allowance
- Net sales - Cost of goods sold = Gross profit
- Gross profit - Operating expenses = Net income
- Net sales + Sales return and allowance = Sales revenue
- Net sales - Gross profit = Cost of goods sold
- Gross profit - Net income = Operating expenses
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<em>brainly.com/question/15062414</em>
Answer:
$16,100 favorable
Explanation:
The computation of the direct labor efficiency variance for June is shown below:
= Standard rate × (standard hours - actual hours)
= $23 × (1.3 × 35,000 - 44,800)
= $16,100 favorable
hence, the direct labor efficiency variance for June is $16,100 favorable
The same should be considered and relevant
Answer:
b. decrease no effect
Explanation:
When the treasury stock is repurchased and at a premium. That is the price more than the par value, the excess is debited to the additional paid in capital account as this is the account used to fund the additional amount required to pay the differential.
Retained earnings on the other hand are unaffected by this transaction as long as the company has enough funds in the paid in capital account to complete the transaction.
Total paid in capital will decrease
Retained earnings will have no effect
Hope that helps.
Answer:
A. not affect expenses in 2019.
Explanation:
Using the allowance method, when the amount is written off , the account receivable account is credited whereas the allowance for doubtful debts is debited
Moreover, it does not affect the income statement as there is no expenses incurred or no revenue earned is recorded
So, in this case, there is no affect on expenses account