Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN: 9781305654174
Author: Gary A. Porter, Curtis L. Norton
Publisher: Cengage Learning
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Selected comparative financial statements of Korbin Company follow.
KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31, 2019, 2018, and 2017
2019
2018
2017
$ 524,423 $ 401,751 $ 278,800
315,703
253,907
178,432
208,720
147,844
55,442
35,354
90,796
Sales
Cost of goods sold
Gross profit
Selling expenses
Administrative expenses
Total expenses
Income before taxes
Income tax expense.
Net income
Assets
Current assets
Long-term investments
Plant assets, net
Total assets
Liabilities and Equity
Current liabilities
Common stock
Other paid-in capital
MUNUAN LAICHITE
Comparative Balance Sheets
December 31, 2019, 2018, and 2017
2019
74,468
47,198
121,666
87,054
16,192
$ 70,862
Retained earnings
Total liabilities and equity
57,048
11,695
$ 45,353
2018
$ 58,571 $ 39,201
500
110,464
100,715
$ 169,035 $ 140,416
2017
$ 52,403
4,740
59,192
$116,335
$ 24,679 $ 20,922
73,000…
owing income statement accounts in the popup window, E
t for the year.
ow for the year.
Data Table
nt for the year.
at below. (Round to the nearest dollar.
(Click on the following icon in order to copy its contents into a spreadsheet.)
ncome Statement
Income Statement Accounts for the Year Ending 2017
Balance
nding December 31, 2017
Account
Cost of goods sold
Interest expense
Taxes
Revenue
Selling, general, and administrative expenses
Depreciation
$341,000
$75,000
59,600
S743,000
$62,000
$116,000
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GLO401 (Algo) - Based on Problem 4-1A LO P1, P2
erences
Prepare journal entries to record the following merchandising transactions of Turner's, which uses the perpetual inventory system and
the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts
Payable-Griffin.)
Graw
July 1 Purchased merchandise from Griffin Company for $10,400 under credit terms of 1/15, n/30, FOB shipping point,
invoice dated July 1.
July 2 Sold merchandise to Wilson Company for $3,100 under credit terms of 2/10, n/60, FOB shipping point, invoice
dated July 2. The merchandise had cost $1,860.
July 3 Paid $1,005 cash for freight charges on the purchase of July 1.
July 8 Sold merchandise that had cost $3,700 for $6,100 cash.
July 9 Purchased merchandise from Lee Company for $4,400 under credit terms of 2/15, n/60, FOB destination, invoice
dated July 9.
July 11 Returned $900 of merchandise purchased on July 9 from Lee Company and…
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