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    Practice Questions Chapter 6 Q

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    Asad Syed
    This document contains 4 practice questions from an accounting principles course related to accounting for merchandising businesses. Each question provides financial data and asks the student to prepare various financial statements including income statements and statements of owner's equity.

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    Practice Questions Chapter 6 Q

    Uploaded by

    Asad Syed
    124 views2 pages
    This document contains 4 practice questions from an accounting principles course related to accounting for merchandising businesses. Each question provides financial data and asks the student to prepare various financial statements including income statements and statements of owner's equity.

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    accounting practice questions

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    This document contains 4 practice questions from an accounting principles course related to accounting for merchandising businesses. Each question provides financial data and asks the student to prepare various financial statements including income statements and statements of owner's equity.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    124 views2 pages

    Practice Questions Chapter 6 Q

    Uploaded by

    Asad Syed
    This document contains 4 practice questions from an accounting principles course related to accounting for merchandising businesses. Each question provides financial data and asks the student to prepare various financial statements including income statements and statements of owner's equity.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    ACT 112 Principles of Accounting I

    Practice Questions
    Ch6 Accounting for Merchandising Businesses
    1. The following data for the current year ended June 30 were extracted from the accounting
    records of Excel Co.:

    Cost of merchandise sold $195,000


    Operating expenses 65,000
    Sales 548,000

    Prepare a multiple-step income statement for the year ended June 30, 2010.

    2. Selected data from the ledger of Morrison Co. after adjustment at September 30, 2011 the
    end of the fiscal year, are listed as follows:

    Accounts Receivable $ 39,120 Office Equipment $ 82,700


    Accumulated Depreciation 60,540 Prepaid Insurance 4,680
    Administrative Expenses 90,000 Note Payable 77,750
    Bob Morrison, Capital 85,000 Salaries Payable 3,060
    Cost of Merchandise Sold 550,000 Sales (net) 950,000
    Bob Morrison, Drawing 65,000 Selling Expenses 102,000
    Interest Revenue 10,000 Supplies 3,125

    Prepare an income statement, using the single-step form, and a statement of owner's equity.

    3. Prepare (a) a single-step income statement, (b) a statement of owner's equity, and (c) a balance
    sheet in report form from the following data for Kooper Co., taken from the ledger after
    adjustment on December 31, 2010 the end of the fiscal year.

    Accounts Payable $ 97,200 Merchandise Inventory 93,250


    Accounts Receivable 64,300 Note Payable, Due 2012 154,000
    Accumulated Depreciation - Office Equipment 72,750 Office Equipment 149,750
    Accumulated Depreciation - Store Equipment 162,100 Prepaid Insurance 6,500
    Administrative Expenses 56,500 Rent Revenue 17,500
    Maeve Kooper, Capital 81,750 Salaries Payable 28,700
    Cash 53,000 Sales (net) 365,500
    Cost of Merchandise Sold 121,700 Selling Expenses 41,500
    Maeve Kooper, Drawing 52,000 Store Equipment 325,000
    Interest Expense 12,000 Supplies 4,000

    1
    4. Prepare a multiple-step income statement for Armour Co. from the following data for the
    year ended December 31, 2010.

    Sales, $905,000; cost of merchandise sold, $540,000; administrative expenses, $10,000; interest
    expense, $20,000; rent revenue, $25,000; sales returns and allowances, $35,000; selling
    expenses, $90,000.

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