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Accounting Act3

The document lists transactions for June including paying office staff $9,750, finding inventory costing $1,725 obsolete, selling $25,000 of goods, and paying $750 for radio advertising. It also shows sales of $275,000, cost of goods sold of $164,000, expenses of $82,315, and net income of $28,685.

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Francis Jave Tabernilla
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26 views13 pages

Accounting Act3

The document lists transactions for June including paying office staff $9,750, finding inventory costing $1,725 obsolete, selling $25,000 of goods, and paying $750 for radio advertising. It also shows sales of $275,000, cost of goods sold of $164,000, expenses of $82,315, and net income of $28,685.

Uploaded by

Francis Jave Tabernilla
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Transactions for June:

b. Paid office staff $9,750 for work performed in June


c. Products in inventory costing $1,725 were found to be obsolete
d. Sold goods with a cost of $25,000 in June
e. Paid $750 for radio advertising in June
f. Purchased additional inventory for $27,000
Sales $ 275,000
Less Cost of goods sold $ 164,000
Gross Revenue $ 111,000
Less Expenses
Rent $ 3,300
Salaries $ 27,400
Taxes $ 1,375
Others $ 50,240
Total Expenses $ 82,315

Net Income $ 28,685


Purchase $ 78,000
Add Beginning inventory $ 27,000
Good available for sale $ 105,000

Less Ending Inventory $ 31,000


Cost of good sold $ 74,000
a. Calculate:

1. Gross margin (in dollar)


=𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 −𝐶𝑜𝑠𝑡 𝑜𝑓 𝑆𝑎𝑙𝑒𝑠
=$85,000 −$45,000
=$𝟒𝟎,𝟎𝟎𝟎

2. Gross Margin %
=(𝐺𝑟𝑜𝑠𝑠 𝑀𝑎𝑟𝑔𝑖𝑛)/(𝐺𝑟𝑜𝑠𝑠 𝑅𝑒𝑣𝑒𝑛𝑢𝑒)∗100

=40,000/85,000∗100

= 47.6%

3. Profit margin percentage


=(𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒)/(𝐺𝑟𝑜𝑠𝑠 𝑅𝑒𝑣𝑒𝑛𝑢𝑒)∗100

=9,000/85,000∗100

= 10.6%
QED Electronics Company
Income Statement
April
Revenue:
Service Revenue….............................................................$33,400.00

Expenses:
Bad Debt….........................................................$645.00
Interest Expense……..........................................$880.00
Wages……....................................................$10,000.00
Parts…….........................................................$3,700.00
Depreciation expense……...............................$2,700.00
Selling expenses…….......................................$1,900.00
Utility bills…......................................................$800.00
Administrative and misc……...........................$4,700.00
Total Expenses….............................................................($25,325.00)

Net Profit before Tax…............................................................$8,075)


Income Tax….....................................................................($2,800.00)

Net Income…........................................................................$5,275.00
Maynard Company
Income Statement
For Month of June

Particulars Total ($)


Sales Revenue 70925.00
Cost of Goods Sold 39345.00
Gross Margin 31580.00
Supplies Expenses 600.00
Wage Expenses 5888.00
Utilities Expenses 900.00
Depreciation Expenses (building and equipment) 2574.00
Insurance Expenses 324.00
Miscellaneous Expenses 135.00
Income before income taxes (IBIT) 21159.00
Income tax expenses 1524.00
Net Income 19635.00

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