Problem 5-3A Preparing adjusting entries and income statem

Problem 5-3A Preparing adjusting entries and income statements; and computing gross margin acid-test and current ratios L.O. A1 A2 P3 P4 [The following information applies to the questions displayed below.] The following unadjusted trial balance is prepared at fiscal year-end for Rex Company. REX COMPANY Unadjusted Trial Balance January 312011 Debit Credit Cash $ 2200 Merchandise inventory 11500 Store supplies 4800 Prepaid insurance 2300 Store equipment 41900 Accumulated depreciationStore equipment $ 15000 Accounts payable 9000 T. Rex Capital 32000 T. Rex Withdrawals 2000 Sales 104000 Sales discounts 1000 Sales returns and allowances 2000 Cost of goods sold 37400 Depreciation expenseStore equipment 0 Salaries expense 31000 Insurance expense 0 Rent expense 14000 Store supplies expense 0 Advertising expense 9900 Totals $ 160000 $ 160000 Rent expense and salaries expense are equally divided between selling activities and the general and administrative activities. Rex Company uses a perpetual inventory system. a. Store supplies still available at fiscal year-end amount to $1650. b. Expired insurance an administrative expense for the fiscal year is $1500. c. Depreciation expense on store equipment a selling expense is $1400 for the fiscal year. d. To estimate shrinkage a physical count of ending merchandise inventory is taken. It shows $11100 of inventory is still available at fiscal year-end. Problem 5-3A Part 1 Required: 1. Using the above information prepare adjusting journal entries(Omit the $ sign in your response): General Journal Debit Credit a. b. c. d. Problem 5-3A Part 2 2. Prepare a multiple-step income statement for fiscal year 2011. (Input all amounts as positive values. Omit the $ sign in your response.) REX COMPANY Income Statement For Year Ended January 31 2011 $ $ Expenses Selling expenses Total selling expenses General and administrative expenses Total general and administrative expenses Total expenses $ Problem 5-3A Part 3 3. Prepare a single-step income statement for fiscal year 2011. (Input all amounts as positive values. Omit the $ sign in your response.) REX COMPANY Income Statement For Year Ended January 31 2011 $ Expenses $ Total expenses $ Problem 5-3A Part 4 4. Compute the current ratio acid-test ratio and gross margin ratio as of January 31 2011. (Round your answers to 2 decimal places.) Current ratio Acid-test ratio Gross margin ratio Problem 5-4A Computing merchandising amounts and formatting income statements L.O. C2 P4 [The following information applies to the questions displayed below.] BizKid Companys adjusted trial balance on August 31 2011 its fiscal year-end follows. Debit Credit Merchandise inventory $ 31000 Other (noninventory) assets 120400 Total liabilities $ 35000 N. Kidman Capital 101650 N. Kidman Withdrawals 8000 Sales 212000 Sales discounts 3250 Sales returns and allowances 14000 Cost of goods sold 82600 Sales salaries expense 29000 Rent expenseSelling space 10000 Store supplies expense 2500 Advertising expense 18000 Office salaries expense 26500 Rent expenseOffice space 2600 Office supplies expense 800 Totals $ 348650 $ 348650 On August 31 2010 merchandise inventory was $25000. Supplementary records of merchandising activities for the year ended August 31 2011 reveal the following itemized costs. Invoice cost of merchandise purchases $ 91000 Purchase discounts received 1900 Purchase returns and allowances 4400 Costs of transportation-in 3900 Problem 5-4A Part 1 Required: 1. Compute the companys net sales for the year. (Omit the $ sign in your response.) Net sales $ Problem 5-4A Part 2 2. Compute the companys total cost of merchandise purchased for the year. (Omit the $ sign in your response.) Total cost of merchandise purchased $ Problem 5-4A Part 3 3. Prepare a multiple-step income statement that includes separate categories for selling expenses and for general and administrative expenses. (Input all amounts as positive values. Omit the $ sign in your response.) BIZKID COMPANY Income Statement For Year Ended August 31 2011 $ $ Expenses Selling expenses Total selling expenses General and administrative expenses Total general and administrative expenses Total expenses $ Problem 5-4A Part 4 4. Prepare a single-step income statement that includes these expense categories: cost of goods sold selling expenses and general and administrative expenses. (Input all amounts as positive values. Omit the $ sign in your response.) BIZKID COMPANY Income Statement For Year Ended August 31 2011 $ Expenses $ Total expenses $