Question

Please show the steps to find answers.

A) What are expenses if stockholders'equity at the beginning of the period is $ 820, Revenues is $ 12,000, Stockholders' Equity at the end of the period is $ 2,400, Dividends is $ 2,600, and Additional Investments is 38,700?

b) V Company purchases merchandise on account for $6,775 from C Company with credit terms of 3/10, n/30, FOB shipping point. C Company directly pays the shipper $351 cash for freight. What is the amount of the check that Valley will prepare if they pay Corn Company within the discount period?

c) C  Company has the following account balances: Purchases of $ 9,300, Purchase Returns and Allowances of $ 725, Purchase Discounts of $ 1,200, Freight-In of $ 120, Freight-Out of $ 240,and Beginning Inventory of $ 3,085. What is the Cost of Goods Available for Sale?

Answer 1

A)

Stockholders'equity at the beginning of the period = $ 820

Revenues = $12,000

Stockholders' Equity at the end of the period = $2,400

Dividends is = $2,600

Additional Investments = $38,700

Expenses = ?

Stockholders' Equity at the end of the period = Stockholders'equity at the beginning of the period + Revenues - Expenses - Dividends + Additional Investments

2,400 = 820 + 12,000 - Expenses - 2,600 + 38,700

Expenses = $46,520

b)

Purchases = $6,775

Credit terms = 3/10, n/30, FOB shipping point.

C Company directly pays the shipper $351 cash for freight.

Discount = 6,775 x 3%

= $203.25

Amount of the check that Valley will prepare = Purchase - Discount + Freight

= 6,775 - 203.25 + 351

= $6,922.75

c)

Purchases = $9,300,

Purchase Returns and Allowances = $725

Purchase Discounts = $1,200

Freight-In = $120

Freight-Out = $240

Beginning Inventory = $3,085

Cost of Goods Available for Sale = Beginning Inventory + Purchases - Purchase Returns and Allowances - Purchase Discounts + Freight-In

= 3,085 + 9,300 - 725 - 1,200 + 120

= $10,580