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    Accounting Questions

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    BE5-1 Presented below are the components in Clearwater Company's income statement. Determine
    the missing amounts.

    Sales Cost of Gross Operating Net
    Goods Profit Expenses Income

    (a) $75,000 ? $28,600 ? $10,800
    (b) $108,000 $70,000 ? ? $29,500
    (c) ? $71,900 $99,600 $39,500 ?

    BE5-5 Piccola Company provides the following information for the month ended October 31,
    2006: Sales on credit $280,000, cash sales $100,000 sales discounts $13,000, sales returns and allowances
    $21,000. Prepare the sales revenues section of the income statement based on this information.

    BE5-10 Assume that E. Guard Company uses a periodic inventory system and has these account
    balances: Purchases $400,000; Purchase Returns and Allowances $11,000; Purchase Discounts
    $8,000; and Freight-in $16,000. Determine net purchases and cost of goods purchased.

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    BE5-1 Presented below are the components in Clearwater Company's income statement. Determine
    the missing amounts.

    Sales Cost of Gross Operating Net
    Goods Profit Expenses Income

    (a) $75,000 ? $28,600 ? $10,800
    (b) $108,000 $70,000 ? ? $29,500
    (c) ? $71,900 $99,600 $39,500 ?

    The question to use is
    Sales - Cost of Goods Sold = Gross Profit
    Gross Profit - Operating Expenses = Net Income

    a. Cost of Goods Sold ...

    Solution Summary

    The solution has 3 accounting questions relating to finding the missing amounts, preparing the sales revenue section and calculating net purchases and cost of goods purchased.

    $2.19

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