Acct2001 Chapter 5 Example 3
Mandela Company's first year in operation was 2021.
Operating expenses for the year were $14,000, and the corporate tax rate was 30%.
During the year, Mandela sold 280 units at a retail price of $240 each.
Assume Ending Inventory totals $23,700.
The following inventory information comes from Mandela's accounting records for the year.
Beginning Inventory 0 units
Jan 27 purchase 100 units @$150 each $15,000
Apr 26 purchase 200 units @$160 each $32,000
Nov 20 purchase 125 units @ $164 each $20,500
Cost of Goods Available for sale $67,500 ------ some COGS
|
. some left in Ending Inventory
Required:
a) Record journal entries for the year 2021 transactions
b) Calculate the cost of goods sold.
c) Prepare a multistep income statement
INCOME STATEMENT
Sales
Net Income after tax
