Question

Exercise 5-13

The trial balance of Skysong, Inc. at the end of its fiscal year, August 31, 2022, includes these accounts: Beginning Inventory $23,300; Purchases $186,330; Sales Revenue $192,400; Freight-In $7,890; Sales Returns and Allowances $5,370; Freight-Out $3,100; and Purchase Returns and Allowances $7,010. The ending inventory is $22,000.

Prepare a cost of goods sold section (periodic system) for the year ending August 31, 2022.

Skysong, Inc. Income Statement choose the accounting period August 31, 2022For the Month Ended August 31, 2022For the Year Ended August 31, 2022
select an income statement item Cost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsExpensesInventory, September 1, 2021Inventory, August 31, 2022Net Income / (Loss)Net PurchasesRetained Earnings, September 1, 2021Retained Earnings, August 31, 2022RevenuesTotal ExpensesTotal Revenues		$enter a dollar amount
enter an opening name for subsection one	$enter a dollar amount
select between addition and deduction AddLess : enter an income statement item	enter a dollar amount
select a closing name for subsection one Cost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsExpensesInventory, September 1, 2021Inventory, August 31, 2022Net Income / (Loss)Net PurchasesRetained Earnings, September 1, 2021Retained Earnings, August 31, 2022RevenuesTotal ExpensesTotal Revenues	enter a total amount for subsection one
select between addition and deduction AddLess : enter an income statement item	enter a dollar amount
select an income statement item Cost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsExpensesInventory, September 1, 2021Inventory, August 31, 2022Net Income / (Loss)Net PurchasesRetained Earnings, September 1, 2021Retained Earnings, August 31, 2022RevenuesTotal ExpensesTotal Revenues		enter a total of the two previous amounts
select a summarizing line for this part of the income statement Cost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsExpensesInventory, September 1, 2021Inventory, August 31, 2022Net Income / (Loss)Net PurchasesRetained Earnings, September 1, 2021Retained Earnings, August 31, 2022RevenuesTotal ExpensesTotal Revenues		enter a subtotal amount for this part of the statement
select an income statement item Cost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsExpensesInventory, September 1, 2021Inventory, August 31, 2022Net Income / (Loss)Net PurchasesRetained Earnings, September 1, 2021Retained Earnings, August 31, 2022RevenuesTotal ExpensesTotal Revenues		enter a dollar amount
select a closing section name Cost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsExpensesInventory, September 1, 2021Inventory, August 31, 2022Net Income / (Loss)Net PurchasesRetained Earnings, September 1, 2021Retained Earnings, August 31, 2022RevenuesTotal ExpensesTotal Revenues		$enter a total amount for this section

Answer 1

Prepare a cost of goods sold section (periodic system) for the year ending August 31, 2022.

Skysong, Inc. Income Statement choose the accounting period For the Year Ended August 31, 2022
Beginning inventory		$23300
Purchases	186330
Less: Purchase return and allowance	-7010
Net purchase	179320
Add: Freight in	7890
Cost of goods purchases		187210
Cost of goods available for sale		210510
Less: Ending inventory		-22000
Cost of goods sold		$188510