Answer to Question #286371 in Accounting for ast

Question

a) Assume the following data extracted from accounting records of XYZ Company, a

merchandising firm

Gross Purchase Br. 400,000Sales returns and allowance 5,000Sales discount 1,000Purchase returns and allowance 2,000Purchase discount 500Gross sales 800,000Ending inventory 40,000Beginning inventory 50,000Transportation in 1500Operating expenses 150,000Non-operating Expenses 10,000Income Tax 30%Required: Compute Net income (net loss) for the period

b) Assume that assets and liabilities increased by Br.240,000, and Br. 120,000 respectively

during a given year. Assume the following additional particulars further

▪ Revenues generated during the year….Br.80,000

▪ Additional investment made by the owner during the year ……….Br. 70,000

▪ Amount withdrawn by the owner during the year….. $10,000

Required: Determine the amount of expense incurred during the year

Answer 1

Let's solve it in EXCEL

a)

b)Expenses - reduction of economic benefits in the form of disposal of assets or exhaustion of resources, or in the form of an increase in liabilities leading to a decrease in capital (other than the reduction associated with the distribution of capital between owners)

Expenses=120 000+70000=190 000