70.2K

Verified Solution

Link Copied!

Appendix 2 PR 5-10A Periodic inventory accounts, multiple-step income statement, closing entries On December 31, 2045, the balances of the accounts appearing in the ledger of Wyman Company are as follows: $ 13,500 72,000 257,000 35,000 3,000 4,500 150,000 270,000 Cash Accounts Receivable Inventory, January 1, 2045 Estimated Returns Inventory, January 1, 2015 Office Supplies Prepaid Insurance Land Store Equipment Accumulated Depreciation- Store Equipment Office Equipment Accumulated Depreciation- Office Equipment Accounts Payable Salaries Payable Customer Refunds Payable Unearned Rent Notes Payable Common Stock Retained Earnings 55,900 78,500 Dividends $ 25,000 Sales 3,280,000 Purchases 2,650,000 Purchases Returns and Allowances 93,000 Purchases Discounts 37,000 Freight in 48,000 Sales Salaries Expense 300,000 Advertising Expense 45,000 Delivery Expense 9,000 Depreciation Expense- Store Equipment 6,000 Miscellaneous Selling Expense 12,000 Office Salaries Expense 175,000 Rent Expense 28,000 Insurance Expense 3,000 Office Supplies Expense 2,000 Depreciation Expense- Office Equipment 1,500 Miscellaneous Administrative Expense 3,500 Rent Revenue 7,000 Interest Expense 2,000 16,000 77,800 3,000 50,000 8,300 50,000 150,000 365,600 Instructions 1. Does Wyman Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Wyman Company for the year ended Dece 31, 20Y5. The inventory as of December 31, 2045, was $305,000. The estimated costo tomer returns inventory for December 31, 2045, is estimated to increase to $40,000. 3. Prepare the closing entries for Wyman Company as of December 31, 2045. 4. What would be the net income if the perpetual inventory system had been used

Answer & Explanation Solved by verified expert

See Answer