(a) Journalize the transactions, including explanations. (Note, enter all accounts in one box. The dates have been included to help with formatting).
Exercise 5-6
(a) Prepare an income statement using the format presented on page 243. Assume a 25% tax rate.
(b) Calculate the profit margin ratio and gross profit rate.
Prepare a correct detailed multiple-step income statement. Assume a tax rate of 25%.
Problem 6-2B
(a) Determine the Cost of Goods Available for Sale
Determine the ending inventory and cost of goods sold under each of the assumed cost flow methods. Prove the accuracy of the cost of goods sold under FIFO and LIFO.
(c) Which cost flow method results in (1) the highest inventory amount for the balance sheet and (2) the highest cost of godos sold for the income statement?
Problem 6-3B
(a) Determine the Cost of Goods Available for Sale
(b) Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO and average-cost). Prove the accuracy of the cost of goods sold under each method.
(c) Which cost flow method results in the highest inventory amount for the balance sheet? The highest cost of goods sold for the income statement?