Answer:
a. $8,900
b. $7,200
c. $2,300
d. $850
Explanation:
<u>Goods Available For Sale Calculation :</u>
Beginning inventory 5,000
Add Net Purchases 3,900
Goods Available For Sale 8,900
<u>Cost of Goods Sold Calculation :</u>
Goods Available For Sale 8,900
Less Ending Inventory (1,700)
Cost of Goods Sold 7,200
<u>Gross Profit Calculation :</u>
Net Sales 9,500
Less Cost of Goods Sold (7,200)
Gross Profit 2,300
<u>Net Income Calculation :</u>
Gross Profit 2,300
Less Expenses (1,450)
Net Income 850
Answer:
Sep 11
Dr Cash 590.00
Cr Sales 590.00
Dec 31
Dr Warranty expense 59.00
Cr Estimated warranty liability 59.00
July 24
Dr Estimated warranty liability 41.00
Cr Repair parts inventory 41.00
Explanation:
Home Store Journal entry
Sep 11
Dr Cash 590.00
Cr Sales 590.00
Dec 31
Dr Warranty expense (590*10%) 59.00
Cr Estimated warranty liability 59.00
July 24
Dr Estimated warranty liability 41.00
Cr Repair parts inventory 41.00
Are there any answer choices or is it a blank?
Answer:
$90,000
Explanation:
In this question, we compare the net income and the difference should be reported
In the first case, the net income is
= Revenue - expense
= $1,000,000 - $750,000
= $250,000
In the first case, the net income is
= Revenue - expense
where,
Revenue is = $1,000,000 + $150,000 = $1,150,000
And, the expenses is $750,000 + $60,000 = $810,000
= $1,150,000 - $810,000
= $340,000
So, the net profit is increased by
= $340,000 - $250,000
= $90,000
