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Vo Huynh Cam Ly- Group 4
E5-1
1. True
2. False. Statement is=> Sales revenue- Cost of good sold= Gross Profit
3. True
4. True
5. False. The added asset account for merchandising company is the inventory account
6. True
7. True
8. False. Perpetual system shows the quantities that should be on hand, can check
whether the amount of goods with the inventory records. If shortages are uncovered,
the company can investigate immediately.
E5-9
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E5-10 (a) Anhad Company
Income Statement (Multi-Step)
For the Year Ended December 31, 2019
Particular
Amount
Amount
Sale Revenue
Net Sales
Less Cost of goods sold
Cost of good sold
Gross Profit
Less: Operating expense
Operating expense
Income for operation
Add: Others venue and gains
Interest Revenue
Other expenses and losses
Interest Expense
Loss on disposal of plant asset
Net Income
$70,000
17,000
$2,200,000
($1,289,000)
911,000
(725,000)
186,000
28,000
214,000
87,000
127,000
(b) Anhad Company
Income Statement
For the Year Ended December 31, 2019
Particular
Amount
Amount
Revenue
Net Sale
Interest Revenue
Total Revenues
Less: Expenses
Cost of goods sold
Operating Expense
Interest Expense
Loss on disposal of plant asset
Total expense
Net Income
$2,200,000
28,000
1,289,000
725,000
70,000
17,000
$2,228,000
(2,101,000)
127,000
P5-1A Kern's Book Warehouse
General Entries
(Perpetual Inventory System)
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