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Exam #2 Review: Guided Examples
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1
Kleiner Merchandising Company
Accumulated depreciation
$ 700
Beginning inventory
8,500
Ending Inventory
4,500
Expenses
1,800
Net Purchases
9,500
Net Sales
16,500
0.5
points
eBook
Krug Service Company
Expenses
$ 8,100
Revenues
21,000
Cash
600
Prepaid rent
640
Accounts payable
200
Equipment
1,900
Hint
Print
Required:
a. Compute gross profit, the goods available for sale, and the cost of goods sold for the merchandiser. Hint. Not all information may be
necessary
b. Use the above information from a service company and from a merchandiser to compute net income.
References
a.
$
8,900
Goods available for sale
Cost of goods sold
Gross profit
b. Net income for Krug Service Company
Net income for Kleiner Merchandising Company
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Graw
Hill
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