Reference no: EM132643655
On December 31, 20Y5, the balances of the accounts appearing in the ledger of Wyman Company are as follows:
Cash $13,500
Accounts receivable 72,000
Inventory, January 1, 20Y52 57,000
Estimated returns inventory, January 1, 20Y5 35,000
Office supplies 3,000
Prepaid insurance 4,500
Land 150,000
Store equipment 270,000
Accumulated depreciation-store equipment 55,900
Office equipment 78,500
Accumulated depreciation-office equipment 16,000
Accounts payable 77,800
Salaries payable 3,000
Customer refunds payable 50,000
Unearned rent 8,300
Notes payable 50,000
Common stock 150,000
Retained earnings 365,600
Dividends 25,000
Sales 3,280,000
Purchases 2,650,000
Purchases returns and allowances 93,000
Purchases discounts 37,000
Freight in 48,000
Sales salaries expense 300,000
Advertising expense 45,000
Delivery expense 9,000
Depreciation expense-store equipment 6,000
Miscellaneous selling expense 12,000
Office salaries expense 175,000
Rent expense 28,000
Insurance expense 3,000
Office supplies expense 2,000
Depreciation expense-office equipment 1,500
Miscellaneous administrative expense 3,500
Rent revenue 7,000
Interest expense 2,000
Question 1: Does Wyman Company use a periodic inventory system or perpetual inventory system? Which account listed would not be used under both inventory systems?
Question 2: How do you make a multiple-step income statement for Wyman Company for the year ended December 31, 20Y5.??
The inventory as of December 31, 20Y5, was $305,000. The estimated cost of customer returns inventory for December 31, 20Y5, is estimated to increase to $40,000. Be sure to complete the statement heading. Refer to the Instructions and the list of Labels and Amount Descriptions for the exact wording of text entries. Negative amount should be indicated by the minus sign. Colons (:) will fill in where needed.
Question 3: How do you make the closing entries for Wyman Company as of December 31, 20Y5.??
Question 4: What would be the net income if the perpetual inventory system had been used??