Bascomb Company purchased $420,000 in merchandise on account during the month of April, and merchandise costing $350,000 was sold on account for $425,000.
1. Prepare journal entries to record the purchases and sales assuming Bascomb uses a perpetual inventory system.
2. Prepare journal entries to record the purchases and sales assuming Bascomb uses a periodic inventory system.
Z-Mart appropriately uses the installment sales method of accounting for its installment sales. During 2013, Z-Mart made installments sales of $300,000 and received payments of $135,000 on those sales. Z-Mart's gross profit margin is 30%. Prepare journal entries to record the sale, collection, and recognition of gross profit.
Rollins Inc. had 100,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 40%. A partial trial balance of Rollins Inc. at December 31, 201X year end is shown below. Prepare a separate statement of comprehensive income for Rollins Inc. for the year ending December 31, 201X.