Question

Requirement 1. Supply the missing amounts for carn at the flowing companies: Ending Merchandise Grass Profit Company North East Beginning Net Bales Merchandise Net Cost of Revenue Inventory Purches s 101,000 $ 22.000 $ 54.000 147.000 20,000 99,000 13,000 27,000 78.000 15,000 25.500 Inventory 15000 29.000 Cost of Goods Sold 71,000 3 90,000 69,000 33.000 50.000 49,000 24,000 48.000 South 23.000 West Recjuirement 2. Prepare the income statement for the year anced December 31, 2018, for North Company, which uses the periode inventory system. Include a complete heading and show the ul computation of cox of good sold, Nott's operating experies for the year were $18.000 Coat of Goods Sald: a Net Income

Answer 1

Income Statement North Company For the year ended December 31,2019 Sales Revenue $ 101,000 Cost of goods sold Beginning Merchandise Inventory $ 22,000 Net Cost purchases $ 64,000 Cost of goods available for sale $ 86,000 less: Ending merchandise inventory $(15,000) Cost of goods sold $ 71,000 Gross Profit $ 30,000 less : Operating expenses $(16,000) Net Income $ 14,000