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    Dương Nguyễn
    Nancy Company's adjusted trial balance for the fiscal year ending December 31, 2020 is provided. It includes accounts for merchandise inventory, other assets, liabilities, capital, withdrawals, sales, discounts, returns, cost of goods sold, and various expenses. The student is to prepare a multiple-step income statement separating selling expenses from general and administrative expenses using this information. The second exercise asks how many units a furniture store would include in its period-end inventory given information about units in storage, transit, consignment and damaged units. It also asks what costs would be included in inventory cost for a leather bag factory given costs of merchandise, transportation, duties, insurance and various other expenses.

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    Essay

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    Dương Nguyễn
    27 views5 pages
    Nancy Company's adjusted trial balance for the fiscal year ending December 31, 2020 is provided. It includes accounts for merchandise inventory, other assets, liabilities, capital, withdrawals, sales, discounts, returns, cost of goods sold, and various expenses. The student is to prepare a multiple-step income statement separating selling expenses from general and administrative expenses using this information. The second exercise asks how many units a furniture store would include in its period-end inventory given information about units in storage, transit, consignment and damaged units. It also asks what costs would be included in inventory cost for a leather bag factory given costs of merchandise, transportation, duties, insurance and various other expenses.

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    Nancy Company's adjusted trial balance for the fiscal year ending December 31, 2020 is provided. It includes accounts for merchandise inventory, other assets, liabilities, capital, withdrawals, sales, discounts, returns, cost of goods sold, and various expenses. The student is to prepare a multiple-step income statement separating selling expenses from general and administrative expenses using this information. The second exercise asks how many units a furniture store would include in its period-end inventory given information about units in storage, transit, consignment and damaged units. It also asks what costs would be included in inventory cost for a leather bag factory given costs of merchandise, transportation, duties, insurance and various other expenses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    27 views5 pages

    Essay

    Uploaded by

    Dương Nguyễn
    Nancy Company's adjusted trial balance for the fiscal year ending December 31, 2020 is provided. It includes accounts for merchandise inventory, other assets, liabilities, capital, withdrawals, sales, discounts, returns, cost of goods sold, and various expenses. The student is to prepare a multiple-step income statement separating selling expenses from general and administrative expenses using this information. The second exercise asks how many units a furniture store would include in its period-end inventory given information about units in storage, transit, consignment and damaged units. It also asks what costs would be included in inventory cost for a leather bag factory given costs of merchandise, transportation, duties, insurance and various other expenses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 5

    BUSINESS ADMINISTRATION DEPARTMENT

    ESSAY
    SUBJECT: PRINCIPLES OF ACCOUNTING (ACC101)
    Duration: 60 minutes

    STUDENT’S INFORMATION
    Name: Roll number:
    Class: Date:

    EXERCISE 1

    Assume that Nancy’s Adjusted Trial Balance on December 31, 2020, its
    fiscal year-end, is as follow.

    Prepare a Multiple-step Income Statement that includes separate


    categories for selling expenses and for general and administrative expenses.

         

    NANCY COMPANY

    ADJUSTED TRIAL BALANCE

    December 31, 2020

    Debit Credit

    Mer chandise inventory $8,200  

    $26,08
    Other (noninventory) assets  
    0

    Total liabilities   $5,000

    Target, Capital   $20,910

    Target, Withdrawals $1,600  

    Sales   $51,980

    1
    Sales discounts $4,500  

    Sales returns and allowances $2,400  

    $22,15
    Cost of goods sold  
    0

    Sales salaries expense $4,300  

    Rent expense - Selling space $1,600  

    Store supplies expense $300  

    Advertising expense $260  

    Office salaries expense $5,700  

    Rent expense - Office space $720  

    Office supplies expense $80  

    $77,89
    Totals $77,890
    0

    EXERCISE 2
    1. A wooden furniture store named ALEX STORE has the information below. At the
    end of the current period, the Alex store has 28 units of wooden furniture in its store,
    three of which were damaged by water and cannot be sold. Alex store also has another
    ten units in its truck, ready to deliver per a customer order, terms FOB destination, and
    another 15 units out on consignment at several small retail stores.
    How many units does Alex store include in the business’s period-end inventory?
    2. A leather bag factory acquires leather inventory for $1,000, terms FOB shipping
    point. Additional costs in obtaining it and offering it for sale include $50 for
    transportation-in, $150 for import duties, $80 for insurance during shipment, $180 for
    advertising, a $50 voluntary gratuity to the delivery person, $75 for enhanced store
    lighting, and $250 for sales staff salaries.
    For computing inventory, what cost is assigned to this leather bag factory?

    2
    ---------------------- // -------------------------

    ANSWER
    EX1:
    EX2:

    NANCY COMPAN
    Income stateme
    31-December,20
    Sales
    less Sales discounts
    Sales returns and allowances
    Net sales
    Cost of good sold
    Gross profit
    Expenses
    Selling expenses
    Sales salaries expense
    Rent expense - Selling space
    Store supplies expense
    Advertising expense

    Total selling expenses

    3
    General and administrative expense

    Office salaries expense


    Rent expense - Office space
    Office supplies expense

    Total general and administrative expense

    Total expense
    Net Income
    EX2: 1.Units in ending inventory
    Units in storage
    Plus Units in transit ( another)
    Plus Units on consignment
    Less Damage (unsable) units
    Total units in ending inven

    2. Inventory cost
    Merchandise cost
    Plus Transportation-in
    Plus Import duties
    Plus Insurance

    4
    Total inventory cost

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