User Account

All Pages

Calculate the company cost of sales

Assignment Help Accounting Basics
Reference no: EM132736969

Question - The following data are some of the accounts of Cool Water Pty Ltd, a retailer of bottled water:

Account Amount

Revenue from sale of bottled water 88000

Interest Income 5400

Purchase of Inventory 43000

Wages and Salaries 13500

Insurance Expense 4750

Rent Expense 7200

Shareholders' Equity as at 1 July 2019 21500

Interest Expense 7500

Retained Earnings as at 1 July 2019 13700

Advertising Expense 4100

Utilities Expense 3000

Inventory as at 1 July 2019 25000

Inventory as at 30 June 2020 36000

In addition, the company owns a van to distribute its bottled water to some milk bars. The company purchased the van for $42000 on 1 July 2019, with an estimated useful life of 6 years and expected residual value of $6000.

REQUIRED - Based on the information given above:

a. Calculate the company's cost of sales.

b. Determine depreciation expense for the van for the year 2020 assuming the company is using straight-line method.

c. Make the income statement for Cool Water Pty Ltd for the year ended 30 June 2020 (ignore income tax expense).

Reference no: EM132736969

Questions Cloud

We the people : We examined the U.S. Constitution and how it was developed. The Constitution begins with the words, "We the People,"
What is the cost of merchandise sold : What is the Cost of Merchandise Sold on the restated Income Statement which will be acceptable under both US GAAP and International IFRS
The bill of rights provides protection from unreasonable : The Bill of Rights provides protection from unreasonable and arbitrary governmental interference for several civil liberties such as freedom of speech and press
Growing popularity of social media : Given the growing popularity of social media as a political news source and the concurrent rise of fake news, especially in social media outlets,
Calculate the company cost of sales : In addition, the company owns a van to distribute its bottled water to some milk bars. Calculate the company cost of sales
Ideological position and major policy focus : Write an organized, three paragraph short essay outlining a brief bio, including party affiliation, ideological position, and major policy focus.
Boost aggregate demand during the recession : What did the government do to boost aggregate demand during the recession?
Briefly describe the primary principle : Briefly describe the primary principle (if any) which breaches the underpinnings of the practice of auditing
Differentiate between civil rights and civil liberties : Differentiate between civil rights and civil liberties. Analyze safeguards in place to protect civil rights and civil liberties.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Make Bank Reconciliation Statement for One Day Cleaner

Two cheques were outstanding at November 30: no. 921 for $964 and no. 925 for $1085. Make Bank Reconciliation Statement for One Day Cleaner

  Problem based on the end partnership

Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $108,000 based on the terms of the original partnership.

  Convert accrual-basis net income to cash-basis net income

When the total cash inflows exceed the total cash outflows in the statement of cash flows, how and where is this excess identified?

  Determine for December the amount of Earnings per Share

The Common Stock account for Baltimore Corporation on January 1, 2018 was $52,500. Determine for December the amount of Earnings per Share

  Per the text a us parent company doesnt include the income

per the text a u.s. parent company doesnt include the income of the foreign subsidiary till the income is repatriated

  Define overall picture of structure of investment process

You plan to start your own company after graduation. Throughout university, you have been working on a new technology and have done plenty of research.

  During the year hamlet inc paid 29000 to have bond

during the year hamlet inc. paid 29000 to have bond certificates printed and engraved paid 120000 in legal fees paid

  Conduct a vertical analysis by expressing each line

Conduct a horizontal analysis by calculating the year- over- year changes in each line item, expressed in dollars and in percentages (rounded to one decimal place). How did the change in gas prices compare to the changes in Chevrons total revenues an..

  Preparea report for best buy corporations senior managers

Preparea report for Best Buy corporation's senior managers to interpret and explain the SEC10K financial reports. Address the reasons for and benefits of budget

  Why the given item is a material weakness

There is a formal management policy that requires monthly reconciliation of the intercompany accounts; however, there is no process to ensure.

  What is the current price of the bonds

The $1,000 par value bond pays 6 percent annual interest and has 15 years remaining to maturity. What is the current price of the bonds

  Prepare the journal entry to record the issuance

50895095: ACC/423 Final Exam. Pearl Corporation issued 380 shares of $10 par value common stock and 107 shares of $50 par value preferred stock for a lump sum of $15,507. The common stock has a market price of $20 per share, and the preferred stoc..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd