BE5-1 Pedersen Company income statement_Determine the missing amounts_Answer

BE5-1 Presented here are the components in Pedersen Company’s income statement.
Determine the missing amounts.

Sales Cost of Goods Sold Gross Profit Operating Expenses Net Income
$71,200 (b) $30,000 (d) $10,800
$108,000 $70,000 (c) (e) $29,500
(a) $71,900 $109,600 $46,200 (f)

BE5-3 Prepare the journal entries to record the following transactions on Ramirez Company’s books using a perpetual inventory system.
(a) On March 2 Ramirez Company sold $800,000 of merchandise to Ikerd Company,
terms 2/10, n/30. The cost of the merchandise sold was $540,000.
(b) On March 6 Ikerd Company returned $110,000 of the merchandise purchased on
March 2. The cost of the merchandise returned was $75,000.
(c) On March 12 Ramirez Company received the balance due from Ikerd Company.

BE5-4 From the information in BE5-3, prepare the journal entries to record these transactions on Ikerd Company’s books under a perpetual inventory system.

BE5-7 Holmes Company sold goods with a total selling price of $800,000 during the year.
It purchased goods for $380,000 and had beginning inventory of $70,000. A count of its ending inventory determined that goods on hand was $50,000. What was its cost of goods sold?

BE6-1 Jack Penny Company identifies the following items for possible inclusion in the
physical inventory. Indicate whether each item should be included or excluded from the
inventory taking.
(a) Goods shipped on consignment by Penny to another company.
(b) Goods in transit from a supplier shipped FOB destination.
(c) Goods sold but being held for customer pickup.
(d) Goods held on consignment from another company.